Real Estate

How Much House Can You Afford?

Learning your credit score and securing a solid down payment are two steps in the right direction to buying a house. But calculating how much you can afford also depends on: (1) How much you want to finance, (2) Your debt to income ratio, (3) What you are willing and able to pay every month over what period of time. In addition to shaping your budget, these factors inform whether you should choose a standard 30-year loan or a 15-year loan with higher payments but less interest.

By Alden Wicker, ago