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Price Range Calculator
To arrive at an "affordable" home
price, we followed the guidelines of most
lenders. We've allowed a total debt-to-income
ratio of no more than 36%. And we have assumed
a housing payment-to-income ratio of 28%
for our conservative estimate, and 33% for
the aggressive one.
We've factored
a 30-year mortgage term, annual property tax
of $2,500 and homeowners insurance of $400.
We did not factor in private mortgage insurance,
which you'll owe if your down payment is less
than 20 percent of the purchase price. It
averages from $50 to $80 per month. |