Find Out How Much I Can Afford to Buy a House in Phoenix AZ with Affordability Calculator
“How much I can afford to buy a house?” is a question we hear frequently from first time home buyer looking to buy a home. When you buy a home, the amount you can spend depends on how much you have in cash to use for a down payment and how much you can borrow. A mortgage lender can prequalify you for a loan, in the mortgage prequalification process, lender will ask you a few questions about your income, credit profile and debt, and give you an estimate of what you can borrow based on those facts.
Find Your Own Comfortable Payment
Before you meet with a lender to get mortgage prequalification, it’s a good idea to evaluate your personal financial situation and come up with a monthly payment range that you and your family can comfortably afford. You can use your current comfort level with your rent payment and look at your monthly income and expenses to estimate your own ideal mortgage payment. Don’t forget that when you become a homeowner your housing payment will include principal and interest, property taxes and homeowners’ insurance. If your down payment is less than 20 percent, you’ll need to pay private mortgage insurance. In addition, you may need to budget to pay homeowner association dues.
Use this calculator to guess-timate your monthly mortgage payment, including taxes and insurance.
Purchase Price
This is amount of home that you are planning to buy.
Mortgage Term
This is the length of time you choose to pay off your loan (e.g., 30 years, 20 years, 15 years, etc.)
Down Payment
This is the amount of money you comfortable on putting towards a down payment on the house. Be sure to budget about 3% of purchase price for closing cost.
How Important Is Your Down Payment on a Home?
Annual/Property Tax
The mortgage payment calculator includes estimated property taxes. The value represents an annual tax on homeowners’ property and the tax amount is based on the home’s value. In Maricopa county, typically property tax is about 1%.
Interest Rate
This is the interest rate for the mortgage.
Homeowner/Annual Insurance
Commonly known as hazard insurance, most lenders require insurance to provide damage protection for your home and personal property from a variety of events, including fire, lightning, burglary, vandalism, storms, explosions, and more. All homeowner’s insurance policies contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off your property.
What You Must Know About Insurance When Buying a Home?
Monthly HOA Dues
Typically, owners of condos or townhomes are required to pay homeowners association dues (known as HOA fees), to cover common amenities or services within the property such as garbage collection, landscaping, snow removal, pool maintenance, and hazard insurance.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ area, we hope you will consider us. Contact us today for complimentary consultation.
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