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How Big a Mortgage Can I Afford?

By
Real Estate Agent with Atlas Realty Investments, LLC
Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.

This calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be too.

Rent: _________________________

Multiplier: X 1.32

Mortgage payment:__________________

Because of tax deductions, you can make a mortgage payment-including taxes and insurance-that is approximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use the Fannie Mae's online mortgage calculators.