WHAT CAN YOU AFFORD?
Realistically assessing your finances upfront will streamline the homefinding process.
Step 1 Monthly Income
- Wages, salaries, business income after expenses
- Interest, dividends or rental income
- Other income (alimony, child support, pensions or Social Security)
- Total Monthly Income (Step 1) $
Step 2 Monthly Non-Housing Expenses
- Food/clothing
- Medical (include insurance premiums and prescriptions)
- Life insurance
- Child care
- Automobile expenses (loan, insurance, maintenance)
- Education/student loans
- Travel/recreation
- Monthly credit card payments
- Monthly bank loan payments (other than a mortgage)
- Alimony or child support you owe
- Savings and investments
- Income taxes
- Total Monthly Non-Housing Expenses (Step 2) $
Step 3 Amount Available for Monthly Housing Expenses
- Total Monthly Income (Step 1)
- minus total Non-Housing Expenses (Step 2)
- Equals Amount Available for Monthly Housing Expenses (Step 3) $
Step 4 Monthly Estimated Housing Expense
- Mortgage loan payment (principal and interest)
- Property taxes
- Mortgage insurance
- Homeowner?s insurance (liability, flood, fire)
- Utilities (heat, water, electricity, gas, trash removal)
- Maintenance and repairs
- Other (assessments, homeowners association dues)
- Total Monthly Estimated Housing Expenses (Step 4) $
Compare Step 3 and Step 4 Totals. The Total Monthly Estimated Housing Expenses (Step 4) should not exceed the Amount Available for Monthly Estimated Housing Expenses (Step 3).