How much house can I afford?

How to choose the right private house, and what points do you need to pay attention to? First, you need to understand that a private home is your place of comfort, coziness, and enjoyment of life. Therefore, a priori, it should be pleasant for you and one where you would like to return after a busy day. Buying a house is a serious decision that changes lives in simple terms and financially. It would help if you were sure that you could afford to buy a house or take out a mortgage on it. Many people ask how much home can i afford based on monthly payment. With some tips, this is easy to figure out.

House selection

Points to pay special attention to when considering home affordability:

  • type of private house — townhouse, cottage, villa, luxury house, and others;

  • the material from which it is built — wood, stone, brick;

  • value for money construction;

  • exterior and landscape – attractive appearance and street infrastructure.

To understand can you afford a house, you need to find out what you need this building for (permanent residence, seasonal holidays, events, or parties). The choice of a house will depend on this. Moreover, pay attention to this video It will help you figure out the main rules of choosing a house.

Where to begin

One of the essential points in choosing a home is its price. Many young families ask themselves: what can we afford mortgage? Several stages of planning a purchase will help answer this question.

It is necessary to independently calculate the maximum cost of your future home because no one will be able to assess your needs and opportunities better than you. To do this, you need to understand how much down payment you can make for an apartment and how much mortgage to take.

Estimate the number of your available funds to buy a house. In case of unforeseen circumstances, the main thing is to determine the amounts you need to save after purchasing a home. Remember, good savings should allow you to live for six months and pay off your mortgage. Assess the possibility of using other sources of funds for the purchase of a house:

  • State subsidies of housing programs.

  • Loans from relatives.

  • The money you can get from selling your apartment.

If the amount received is enough to buy a house, congratulations. If not, you need to estimate the possible size of the mortgage and figure out how much of a mortgage can i afford.

Defining a mortgage

Three factors limit you when determining the size of a mortgage:

  • An initial fee.

  • Maximum monthly payment.

  • Credit term.

Next, we will look at everything about mortgages for a house and how to calculate the maximum mortgage amount. The down payment should be at least 20% of the cost of the future purchase. You can find a mortgage program with a lower down payment, but it will be challenging to get, and the rates will be higher.

Defining a mortgage

Determining the maximum monthly payment

Experts recommend allocating no more than 40% of your income for mortgage payments. Don't exceed this benchmark, and be sure to do your calculation of the maximum mortgage payment. You may be unable to afford to spend 40% of your income on a mortgage.

To do this, you need to evaluate:

  • Current income.

  • Fixed expenses: food, clothing, transport, entertainment, utility bill, education, and others.

  • Potential significant expenses include apartment renovation, car buying, etc.

  • Consider how your expenses and income may change in the next 5-10 years. Will your marital status change? Will your wage be indexed or raised?

Be conservative in your estimates. The amount is based on current and future expenses that you can allocate monthly to pay your mortgage, both today and in the future.

Determine the term of the mortgage

Decide how long you want to pay off your mortgages, such as 5, 10, or 20 years. Then, calculate the maximum mortgage amount. Use the how much mortgage can you afford calculator:

  • Enter your monthly payment details.

  • Enter your down payment details.

  • Select your expected mortgage rate. Choose a loan term.

Calculate to understand what price house can i afford — you will find out the maximum budget for the purchase of an apartment.

Unforeseen situations often happen when there is not enough money to pay off the debt. Therefore, try to see how the conditions change when the loan term adjusts. If your interest rate does not depend on a change in the time, it is better to take a slightly more extended period. You can always repay your loan early (usually without commissions) by regularly paying 40% of your income and maybe even more. But in case of financial difficulties, you will have a small margin, which often saves and makes it possible to pay the next loan on time, avoiding fines and commissions.


Before you dare to buy real estate, you need to carefully weigh and calculate everything and figure out how much mortgage can i get. After all, those who will take out a loan often deceptively believe that low-interest rates on loans are beneficial. But it was not there. In such a case, it is easy to miscalculate.

When buying a property, it is necessary to consider additional costs that are not included in the actual price. Costs of acquiring landed property, notary fees, and registration charges in the land registry. In total, these costs can amount to 15% of the property's value.