How Much Can I Afford?

How Much Can I Afford?
 

Decide How Much You Want to Spend on a Home

Once you know how much you have for a down payment amount, know your credit scores, and have a budget, you can get a realistic estimate of the home price range that you can afford.
 


Explore Mortgage Interest Rates

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.
     

How Much Can You Afford for a Monthly Principal and Interest Payment

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.
     

Determine Your Down Payment

Subtract your closing costs estimate from your available funds for closing to determine your maximum down payment.
 

Calculate Your Loan Amount

You can use our "How Much Can I Afford Calculator" to determine your loan amount.
 

Estimate Your Home Price

Add your down payment to your estimated loan amount to get the home price that will be able to afford.


Your Home Price Estimate is Just that, an Estimate

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.


The Amount of Your Down Payment Affects How Much You Can Afford

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.


The Price You Can Afford Depends on Several Factors

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.
     

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Your Mortgage Broker

As a mortgage broker, we work with several Utah mortgage lenders, enabling us to offer you a variety of Utah mortgages at the best mortgage rates and lowest fees available. Working with several lenders allows us to offer more Utah home loans to help you achieve your goals. Whether you're buying a home or refinancing your current home, Advanced Funding is here to help. Our mortgage loan officers are available to help you during regular business hours or a time that is more suitable to your needs. Call today for more information, 801-272-0600.

Experience Matters

As a top mortgage company, Advanced Funding Home Mortgage Loans offers a variety of Utah mortgages and refinances. Our licensed Utah mortgage brokers are both knowledgeable and experienced to ensure you a pleasant home loan experience at the best interest rates available. We combine the use of technology, impeccable service, a dynamic management team, along with a well-trained, and experienced staff to produce results, such as great mortgage rates, low fees, and most importantly, a fast and pleasant loan experience.

Advanced Funding Home Mortgage Loans
6589 South 1300 East, Suite 200
Salt Lake City, UT 84121

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