Evaluate how much you can pay for a home
Read these steps to learn how to determine a housing budget that’s comfortable for you.
- Review your monthly spending plan and identify non-essential spending.
- Calculate how large a monthly mortgage payment you could make. Don’t forget to factor in cost of utilities, maintenance, insurance, taxes, etc.
- Decide how large a mortgage payment you are willing to make.
- Determine how much money you’ve saved for a down payment and closing costs.
- Talk to a home mortgage consultant about financing options that fit your needs. Try to find a home mortgage consultant who is well-versed in loans specifically designed for the needs of military service members and their families.
Note: As a guideline, your monthly mortgage payment (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income. To determine this amount, take your gross monthly salary (the amount before taxes and deductions) and multiply it by 0.28.
Click the Next button to continue.