The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates
Keep 1%–3% of the home's value in savings for annual repairs. calculate home buying power
Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. The "gold standard" to avoid Private Mortgage Insurance
Your total monthly debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income. 2. Down Payment Amount 3.5%: Minimum for FHA loans. calculate home buying power
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping.