How do I determine what I can afford to pay for a new home?

Lenders will usually allow you to spend up to 28% of your total ("gross") monthly income to make mortgage payments. The table below shows how much 28% equals at various income levels. Different loan plans allow you to borrow more or less for the same monthly payment.

Annual Income	Gross Monthly Income	Affordable Monthly Payment
$15,000	$1,250	$350
$20,000	$1,667	$467
$25,000	$2,083	$483
$30,000	$2,500	$700
$35,000	$2,917	$817
$40,000	$3,333	$933
$45,000	$3,750	$1,050
$50,000	$4,167	$1,167
$55,000	$4,583	$1,283
$60,000	$5,000	$1,400
$65,000	$5,417	$1,517
$70,000	$5,833	$1,633
$75,000	$6,250	$1,750

Call us for a mortgage payment calculator. The calculator shows the monthly principal and interest payments for each size loan at current interest rates. We can show you how much house you can afford after figuring in the down payment, taxes and insurance. You might be surprised at how easily you can afford to buy.