HOW MUCH HOME CAN YOU AFFORD

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Don’t be mislead - when we ask how much home can you afford, we’re not just talking about the size of the property you are considering in Palm Beach neighborhoods from Hypoluxo Island to Boynton Beach. We want to bring to light all of the extra costs that you need to consider when buying a home, as well as remind you of all your other fiscal responsibilities. Figuring out the maximum amount you can spend will help you refine your home buying search.

It’s good to know your limits. In general, your home can be worth up to three times your annual income, as long as you are already prepared to pay 20% as a down payment and you can secure a sizable loan. But remember, your current debt can have an effect on the loan you can get, and will remain as part of your monthly expenditures. So putting all your numbers down on paper is a good idea as you think about how much home you can afford.

Actually calculating how much home you can afford in Palm Beach is not difficult. It’s an aggregate of all your monthly payments – from credit cards to child support – plus all the home costs – from your mortgage to your property taxes and insurance – set against your combined annual gross income. But if you need a quick and easy solution, there are many ‘home affordability’ calculators you can find online.

The most important figures to prepare are: your annual household income, your monthly debt, and the amount of money you have (cash) for a down payment, and your local interest rate. A ‘home affordability’ calculator will take the figures you have compiled and use and show you an idea of how expensive a house you can afford, as well as your monthly mortgage payment – a great way to figure out your buying power.

But for the most accurate information for Hypoluxo Island, Boynton Beach, or elsewhere, make sure to consult with an experienced realtor. Their experience is invaluable and it is their duty to be honest about how much home you can afford.

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