How much mortgage payment can I afford?ДЄs you think about your mortgage payments, itвЂ™s important to understand the difference between what you can spend versus what you can spend while still living comfortably and limiting your financial stress. What do you do with whatвЂ™s left? YouвЂ™ll need to determine a budget that allows you to pay for essentials like food and transportation, wants like entertainment and dining out, and savings goals like retirement. That means your mortgage payment should be a maximum of $1,120 (28 percent of $4,000), and your other debts should add up to no more than $1,440 each month (36 percent of $4,000). The 28/36 percent rule is a tried-and-true home affordability rule of thumb that establishes a baseline for what you can afford to pay every month.ДЇor example, letвЂ™s say you earn $4,000 each month. Most financial advisors agree that people should spend no more than 28 percent of their gross monthly income on housing expenses, and no more than 36 percent on total debt. Input these numbers into our Home Affordability Calculator to get a clear idea of your homebuying budget. Be accurate about how much you spend because this is a big factor in how much you can reasonably afford to spend on a house. This is all the money that goes out on a monthly basis. The popular choice is 30 years, but some borrowers opt for shorter loan terms. Include annual property tax, homeowners insurance costs, estimated mortgage interest rate and the loan terms (or how long you want to pay off your mortgage). Next, list your estimated housing costs and your total down payment.Include all your revenue streams, from alimony to investment profits to rental earnings.

Figure out how much you (and your partner or co-borrower, if applicable) earn each month.What to do when you lose your 401(k) matchД¬alculator: Start by crunching the numbers Should you accept an early retirement offer? How much should you contribute to your 401(k)?

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