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How Much Can You Afford?


Mortgage Affordability Chart

How much house can you afford at today's interest rate? Take a look at the chart below to see how interest rates affect how much you will pay for your home.

How to use the chart:

  • First, determine how much you can comfortably pay monthly for housing expense.
  • Figure out how much you will pay each month in property taxes and insurance, and subtract that number from your monthly maximum payment.
  • Look under each column in the chart to find out what loan amount you can afford at varying interest rates.

For example:

You determine you can pay $1,500 per month for housing.

Your taxes and insurance total $300 per month, so you can afford a monthly mortgage payment of $1,200.

If you look at the chart, you will see that you can take out a loan of $251,353 at 4 percent interest.

If interest rates rise, your loan amount and the price of the home you can afford will go down. For example, the chart shows that if rates were to rise to 6 percent, your loan amount would be reduced to $200,150.

Notes about this chart: This chart was created assuming a 30-year fixed rate conventional loan. The figures listed below include principal and interest only. Keep in mind that your monthly tax and insurance escrow will add to your total monthly mortgage payment. Note that when comparing loans, you must consider the cost of the loan as reflected in the APR.

Interest Rate

Monthly Payment

3%

4%

5%

6%

$300 $71,157 $62,838 $55,884 $50,037
$400 $94,876 $83,784 $74,513 $66,717
$500 $118,595 $104,731 $93,141 $83,396
$600 $142,314 $125,677 $111,769 $100,075
$700 $166,033 $146,623 $130,397 $116,754
$800 $189,752 $167,569 $149,025 $133,433
$900 $213,470 $188,515 $167,653 $150,112
$1,000 $237,189 $209,461 $186,282 $166,792
$1,100 $260,908 $230,407 $204,910 $183,471
$1,200 $284,627 $251,353 $223,538 $200,150
$1,300 $308,346 $272,300 $242,166 $216,829
$1,400 $332,065 $293,246 $260,794 $233,508
$1,500 $355,784 $314,192 $279,422 $250,187
$1,600 $379,503 $335,138 $298,051 $266,867
$1,700 $403,222 $356,084 $316,679 $283,546
$1,800 $426,941 $377,030 $335,307 $300,225
$1,900 $450,660 $397,976 $353,935 $316,904
$2,000 $474,379 $418,922 $372,563 $333,583
$2,100 $498,098 $439,869 $391,191 $350,262
$2,200 $521,817 $460,815 $409,820 $366,942
$2,300 $545,536 $481,761 $428,448 $383,621
$2,400 $569,255 $502,707 $447,076 $400,300
$2,500 $592,973 $523,653 $465,704 $416,979
$2,600 $616,692 $544,599 $484,332 $433,658
$2,700 $640,411 $565,545 $502,960 $450,337
$2,800 $664,130 $586,491 $521,589 $467,017
$2,900 $687,849 $607,438 $540,217 $483,696
$3,000 $711,568 $628,384 $558,845 $500,375


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