How Much Mortgage Can I Afford?

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too. This calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too.

Rent: _________________________
Multiplier: X 1.32
Mortgage payment: __________________

Because of tax deductions, you can make a mortgage payment—including taxes and insurance—that is approximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use Fannie Mae’s online mortgage calculators

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Reprinted from REALTORŪ Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORSŪ
Copyright 2005. All rights reserved.