Use Our Mortgage Calculator

There is no strict formula used by all lenders to determine a home loan amount, but a good working rule of thumb is that you can afford a home equal in price to three times your gross annual income. This formula, of course, needs to be adjusted to a number of factors:

• Amount of available cash for a down payment
• Closing costs and cash reserves required by the lender
• Your outstanding debts (your total debt to income ratio should be under 40 percent)
• Your credit history
• The type of mortgage you select
• Current interest rates
  

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06/01/98