The Home Buyers Guide to

How Much House Can You Afford?

Mortgage 101 How It Works What Can I Afford? Loan Options The Cost of Renting FAQs

What Can I Afford?

A complete resource for new home buyers

When buying your first home, you’ll likely have a lot of questions.

The first thing you should do is find out how much house you can afford. Once you know this, you can start building your personalized home buying team.

Pro Tip: Most first-time home buyers go with a 30-year loan term but there are other loan terms available such as a 20-year or even 15-year mortgage.

What's My Monthly Payment?

Enter your numbers to estimate an affordable monthly payment based on your monthly after-tax income. These numbers are meant only to help build a better idea of your financial situation, to get expert advice, connect with an expert.

Monthly After-Tax Income

Loan Term

Recommended
Monthly Payment:
$750.00

$750.00

$1050

$1350

Affordable Home Prices With Your Recommended Payment

$107,844.08 house with $9,804.01 down. (10%)

$117,648.09 house with $19,608.02 down. (20%)

$127,452.10 house with $29,412.02 down. (30%)

These examples use the loan term provided and assume a fixed-rate mortgage with an interest rate of 6%.

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information.

These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

Budget Breakdown

It can be a struggle to figure out your initial home buying budget but it’s best to have an overall game plan once you start thinking about purchasing a home. Get a head start and become a home buying budget boss:

Down Payment:

3.5 - 20+%

of loan amount

Closing Costs:

2-5%

of loan amount

Mortgage Payment:

Principal + Interest +
Property Tax + Insurance

How Much Does It Cost?

The true cost of a mortgage is just not your monthly mortgage payment. Much more goes into it. Here are the most common fees and services that go into your mortgage so you’ll know what to expect.

Down Payment

Cash that you will pay up front on the final price of your home before the mortgage starts.

Principal

The amount you have borrowed for your home and will need to pay back. If you purchase a home for $250,000 that is the amount of principal you owe.

Interest

The amount you are being charged in order to borrow the money. Interest is based on your principal sum. If you pay $250,000 in principal with a 4% interest rate, you will pay about $10,000 each year in interest until the loan is paid off.

Insurance

Homeowner’s insurance is required. Private Mortgage Insurance (PMI) is for conventional home loans when you pay less than 20% toward your down payment. You will pay Mortgage Insurance Premiums (MIP) if you have an FHA loan.

Closing Costs

These costs are part of your final contract. Most home buyers pay 2-5% of the loan amount in closing fees which usually include: application fee, processing and insurance fees, property taxes, and title company expenses.

Connect with a Mortgage Expert!

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Connect with a Mortgage Expert!

With so much of your hard-earned money on the line, seek advice from a trusted home loan expert and have the confidence that you are in qualified hands.