How much house can I afford?
A general rule is that your monthly housing payment should not exceed 28% of your gross monthly income. Use our calculator above to determine your comfortable price range based on your income, down payment, and current interest rates.
What's included in my monthly mortgage payment?
Your monthly payment typically includes four components (PITI): Principal (loan amount), Interest (cost of borrowing), Property Taxes, and Homeowner's Insurance. If you put down less than 20%, you may also pay Private Mortgage Insurance (PMI).
How much should I put down on a house?
While 20% down is traditional, many buyers put down 3-10%. First-time buyers can qualify for loans with as little as 3% down (Conventional) or 3.5% (FHA). Veterans can get VA loans with 0% down. The more you put down, the lower your monthly payment and interest costs.
What is PMI and how can I avoid it?
Private Mortgage Insurance (PMI) is required on conventional loans when you put down less than 20%. It typically costs 0.5-1% of the loan amount annually. You can avoid PMI by putting down 20% or more, using a VA loan (for veterans), or choosing a piggyback loan structure.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage has lower monthly payments but higher total interest. A 15-year mortgage builds equity faster and saves significantly on interest, but has higher monthly payments. Choose based on your budget, financial goals, and how long you plan to stay in the home.
What credit score do I need to buy a house?
Minimum credit scores vary by loan type: FHA loans allow 580+, Conventional loans typically require 620+, and VA loans often accept 620+. Higher scores (740+) qualify for better interest rates. If your score needs work, I can recommend strategies to improve it before applying.