How Much Can I Afford?
The interest rate you receive is an important factor in determining the home price and monthly mortgage payment you can afford. It’s important to know the range of Utah mortgage rates, and the impact rates have on your home price.
Explore the range of interest rates you can expect, based on your information. Contact your Utah mortgage broker at 801-272-0600 to discuss current interest rates.
Estimate a realistic interest rate to calculate your estimated home price.
The loan amount you can afford depends on how much you can afford to pay each month.
If you haven’t already, decide how much you can afford to spend on a total monthly home payment.
Your total monthly payment includes several costs. Principal and interest payment are the bulk of your total monthly payment.
Estimate how much you expect to pay in property taxes and homeowner’s insurance monthly. Browsing for-sale listings or talking with a mortgage broker or a real estate agent is a good way to get an estimate of those costs.
Subtract your estimated monthly taxes and insurance from your budget payment to get the amount you can afford to pay monthly for principal and interest.
Subtract your closing costs estimate from your available funds for closing to determine your maximum down payment.
You can use our "How Much Can I Afford Calculator" to determine your loan amount.
Add your down payment to your estimated loan amount to get the home price that will be able to afford.
Your estimated home price is a good starting place for deciding how much you can afford. Remember, you made some assumptions with these estimates and they are not perfect.
If your down payment is less than 20% of your estimated home price, you may need to pay mortgage insurance. You may need to reduce the home price to include mortgage insurance.
Change any of these factors, and the amount you may qualify for will change:
How much of a down payment you can afford.
How much you can afford to pay monthly.
The type of loan you get, for example, a 30-year fixed, 30-year adjustable, 15-year fixed, etc.
The interest rate and terms of the loan.