Example: $2,600 - $650 = Step 4: Use a Mortgage Table
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.
Keep 1%–3% of the home's value in savings for annual repairs.
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.
Calculate Home Buying Power -
Example: $2,600 - $650 = Step 4: Use a Mortgage Table
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.
Keep 1%–3% of the home's value in savings for annual repairs.
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.