A good step to take before you start planning on buying a house is to get a good idea of your monthly payments will be. You can figure out what payment you are comfortable with, and then can see what price range of home you'll be looking at.
As a general rule the total payment including taxes and insurance will be just under 1% of the sales price. There are a couple things to keep in mind though.
First, this is just a rough estimate. Interest rate, insurance and property taxes are all variables. So please use it as a general guideline, not an exact calculator.
Second, the further that you move higher than $150,000 the rule becomes less and less than 1%. For example, at $150,000 the payment may be $1400, but for a $400,000 house the payment would be $3200.
Third, this is assuming a down payment of 5%. A larger down payment will lower the payment further.
Fourth, this is not for condos. Condos will be a little more because of HOA dues.
If you want to calculate an actual payment, please go to my mortgage calculator on my website www.america-lending.com.
Hope that helps!
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