Homestead Acres

   
 

Building homes for Northwest Indiana families since 1991

    
   
Where affordability and quality go hand in hand.
 
 

 

 


How much house can you afford?

To get a quick idea of what you can afford to spend, multiply your annual gross income (before taxes) by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is just a rough estimate - you should really take into consideration your other debts and ability to make monthly payments before determining how much house you can afford.

Use the Calculator below to find out how much home you could afford based on how much you make, how much you've got for a downpayment, and your debts.

Gross annual income: $ 
Downpayment amount: $ 
Monthly debt:
(eg. student loan, credit card payments)		 $ 
Mortgage rate:  %
Annual property taxes: $
Annual homeowner insurance: $ 
 


 
Affordable
Aggressive
House price: $ 
Loan amount: $ 
Monthly mortgage
payment:		 $ 
Taxes/ insurance: $ 
Total monthly payment: $ 
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Affordability Calculator

To arrive at an "affordable" home price, we followed the guidelines of most lenders. We've allowed a total debt-to-income ratio of no more than 36 percent. And we have assumed a housing payment-to-income ratio of 28% for our "affordable" estimate, and 33 percent for the "aggressive" one.

We've assumed a 30-year mortgage term at 6.5% interest, annual property tax of $1,500 and homeowners insurance of $481 -- the national average. Plug in your own numbers for more tailor-made results.


 
   
 
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