How Much House Can I Afford? | Bankrate

Calculator: Start by crunching the numbersFigure out how much you (and your partner or co-borrower, if applicable) earn each month. Include all your revenue streams, from alimony to investment profits to rental earnings.Next, list your estimated housing costs and your total down payment. Include annual property tax, homeowners insurance costs, estimated mortgage interest rate and the loan terms (or how long you want to pay off your mortgage). The popular choice is 30 years, but some borrowers opt for shorter loan terms.Lastly, tally up your expenses. This is all the money that goes out on a monthly basis. Be accurate about how much you spend because this is a big factor in how much you can reasonably afford to spend on a house.Input these numbers into our Home Affordability Calculator to get a clear idea of your homebuying budget.Why it’s smart to follow the 28/36% ruleMost financial advisors agree that people should spend no more than 28 percent of their gross monthly income on housin...