Can You Really Afford That Home? How to Avoid Surprises with This Simple Calculator
Hi, Debby here! Are you preparing to buy a home and wondering how to balance your budget with the rising costs of homeownership? In my latest video, I walk you through the Monthly Affordability Calculator—a powerful tool that helps you plan ahead and feel confident in your home-shopping journey.
Let’s break it down.
What’s the Monthly Affordability Calculator?
This calculator takes the guesswork out of determining your home-buying budget. It considers key variables like loan programs, interest rates, down payment amounts, and even HOA fees. The result? You get a clear picture of your buying power and can make informed decisions before you even start home shopping.
Why It Matters
In today’s competitive real estate market, being prepared is crucial. Submitting a pre-qualification letter with your offer can give you a leg up. But it’s not just about being prepared—it’s about being strategic.
Using the Monthly Affordability Calculator helps you avoid common pitfalls, such as falling in love with a home only to discover unexpected HOA fees or other costs that exceed your budget.
Key Features of the Calculator
✔️ Tailored to Your Loan Program: Choose conventional, FHA, VA, or other loan options.
✔️ Interest Rates and Terms: Account for current rates and a 30-year fixed term.
✔️ Taxes and Insurance: Automatically calculate based on property location.
✔️ HOA Fees: Adjust for homes with higher or lower association fees.
Here’s an example:
- Desired monthly payment (PITI): $5,000
- Interest rate: 6.875%
- Down payment: 10%
- HOA fees: $371
This calculation gives you a buying power of approximately $623,305.
Adjusting the HOA fees or increasing your down payment can shift this number, helping you target homes that align with your budget.
Don’t forget to check out the Buydown Calculator to explore how you can leverage market opportunities, like having sellers buy down your rate, to reduce your monthly payment and boost your buying power even further.
Real-World Scenarios
Imagine shopping for a home and finding one with higher HOA fees than expected. Without adjusting your calculations, you could overextend your budget or miss out on homes that are truly within your reach. By staying ahead of the numbers, you avoid surprises and feel confident in your decisions.
Leveraging the Market
In today’s shifting market, homes are sitting longer, and sellers are more willing to negotiate. This presents an opportunity to explore options like a rate buydown, where sellers contribute to lowering your interest rate and could significantly increase your buying power.
Multiple Calculators for Maximum Clarity
Every buyer’s situation is unique. That’s why I recommend exploring all the tools available on my website, including the Buydown Calculator and Buy Now or Later Calculator. Each one provides insights tailored to your financial goals, whether you’re buying, selling, or both.
Ready to Crunch the Numbers?
If you’re curious about your buying power or want to explore strategies like seller-paid rate buydowns, let’s connect! Together, we can ensure you’re fully prepared to find a home you’ll love and feel confident about your investment.
🎥 Watch the full video for more tips, and visit DebbySellsSD.com/calculators to explore all the tools available to help you succeed.
Ready to explore your options further? 📞 Call Debby at 619-820-9999 to get started. Or schedule a time to chat on Debby's CALENDAR.
Debby Eubank, Realtor, SRES
Nest & Invest Host / Real Estate Maven
Jason Mitchell Group
DRE# 01332306
📲 619-820-9999
