You are ready to take the plunge and buy a house. You may find yourself wondering how much you can afford for your mortgage. In general, it is recommended that you pay no more than 1/3 of your income each month towards housing. This will include not only the mortgage, but also things like taxes, association fees (if applicable), and homeowners insurance. To figure out taxes, you must find out the property tax rate for the areas that you are looking to buy.
A lot of websites offer handy calculators which can make this process much easier. I like the one by Bank Rate. You can find it at www.mortgage101.com
Remember, just because you can get approved for a specific amount does not necessarily mean you should spend that amount. The calculator will give you the highest amount you can borrow. You may want to consider paring back a bit so you have some wiggle room in case you need to make repairs, would like to buy some furniture, or do some remodeling.
***you may want to consider reading my post about being pre approved for your mortgage prior to shopping for a home.
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