4 Factors to Consider When Determining How Much Home You Can Afford

(StatePoint) Figuring out how much home you can afford is one of the most important questions you’ll need to answer before you begin house hunting. But as home prices and interest rates have increased in the past few years, you may be wondering how your buying power has changed.

To get a rough estimate of what you can afford, most lenders suggest you spend no more than 28% of your monthly income — before taxes are taken out — on your mortgage payment, which includes principal, interest, taxes and insurance. In addition to having a firm grip on your income and expenses, it’s important to understand the role the following factors play in how much home you can afford:

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