How Big a 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.
Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved.
|
