What Can I Afford


Realistically assessing your finances upfront will streamline the homefinding process.

Step 1 Monthly Income

  • Wages, salaries, business income after expenses

  • Interest, dividends or rental income

  • Other income (alimony, child support, pensions or Social Security)

  • Total Monthly Income (Step 1) $

Step 2 Monthly Non-Housing Expenses

  • Food/clothing

  • Medical (include insurance premiums and prescriptions)

  • Life insurance

  • Child care

  • Automobile expenses (loan, insurance, maintenance)

  • Education/student loans

  • Travel/recreation

  • Monthly credit card payments

  • Monthly bank loan payments (other than a mortgage)

  • Alimony or child support you owe

  • Savings and investments

  • Income taxes

  • Total Monthly Non-Housing Expenses (Step 2) $

Step 3 Amount Available for Monthly Housing Expenses

  • Total Monthly Income (Step 1)

  • minus total Non-Housing Expenses (Step 2)

  • Equals Amount Available for Monthly Housing Expenses (Step 3) $

Step 4 Monthly Estimated Housing Expense

    • Mortgage loan payment (principal and interest)

    • Property taxes

    • Mortgage insurance

    • Homeowner?s insurance (liability, flood, fire)

    • Utilities (heat, water, electricity, gas, trash removal)

    • Maintenance and repairs

    • Other (assessments, homeowners association dues)

    • Total Monthly Estimated Housing Expenses (Step 4) $


Compare Step 3 and Step 4 Totals. The Total Monthly Estimated Housing Expenses (Step 4) should not exceed the Amount Available for Monthly Estimated Housing Expenses (Step 3).