Affordability
How Much Home Can You Afford?
Understanding your buying power is one of the first steps in the home buying process. While online calculators can provide a helpful estimate, the best way to determine your true price range is through a lender pre-approval.
Start Here
Estimate Your Monthly Payment
Online calculators can provide a rough estimate of your potential monthly payment based on the information you enter.
However, these calculators often estimate higher budgets than what buyers ultimately feel comfortable spending. The best way to determine your real buying power is by speaking with a trusted lender who can review your financial situation in detail.
Estimate Your Monthly Payment
$80,000
$500/mo
$20,000
6.50%
You May Be Able to Afford
$236,221
Estimated monthly payment: $1,367
*Estimate based on 28% front-end debt-to-income ratio. Does not include taxes, insurance, or HOA fees.
Monthly Payment
What Makes Up a Mortgage Payment?
Principal
This is the portion of your payment that goes toward paying down the balance of your loan.
Interest
Interest is the cost of borrowing money from the lender.
Taxes
Property taxes are collected as part of your monthly payment and held in escrow to be paid when taxes are due.
Insurance
Homeowners insurance protects the property and is also typically included in the monthly payment.
Together, these four components make up what lenders refer to as "PITI" — the total monthly mortgage payment.
Budgeting
Finding a Monthly Payment That Works for You
One of the first questions we ask buyers is simple:
"What monthly payment would feel comfortable for you?"
While lenders determine what you qualify for, the most important number is the payment that fits comfortably within your lifestyle.
Our goal is to help buyers shop for homes within a price range that makes sense for their financial goals — while still allowing them to enjoy their new home.
Pre-Approval
The Real Answer Comes From a Lender
Online calculators are helpful for getting a rough idea of your potential monthly payment, but they cannot replace a lender reviewing your financial situation.
A lender will evaluate factors such as income, credit score, debt-to-income ratio, and available funds for a down payment. From there they can provide a true pre-approval that clearly defines your buying power.
This not only helps buyers shop with confidence, but it also strengthens offers when it's time to make one.
Ready to Find Out What You Can Afford?
If you're thinking about buying a home in Delaware, Pennsylvania, or Maryland, the best next step is connecting with a trusted local lender who can review your financial situation and determine your true buying power. Our team works closely with experienced lenders who can guide you through the pre-approval process and answer any questions you may have.
Need to sell first? Learn about our seller services
Continue Your Home Buying Journey