Dec 02 2009

‘What home can I afford?’ Calculator

I came across this handy calculator on my bank’s web site. You input how much down payment you have and how much you can afford to spend on housing per month.

In addition, you add the property tax rate, property insurance, mortgage interest rate and length of your mortgage.

I like how the calculator can help you stay on budget. If you know you don’t want your total payment to be more than $1,000, for example, it will help you determine how much house you can afford on that budget.

Factoring in property taxes is a big deal for me.

Here in Pittsburgh, I could expect to pay $3,500 (or more) in property taxes on a $125,000 house.

If I had $1,000 to spend on a monthly payment (mortgage, taxes, insurance, PMI) I could afford a $97,000 house in Pittsburgh.

The same payment in Indianapolis could get me into a $115,000 house, simply because the taxes are lower there.

Just sayin’.



6 Responses to “‘What home can I afford?’ Calculator”

  1. Yeah, but the daily commute from Indy to the ‘burgh would kill your transportation budget! ;)

  2. HOLY CRAP the taxes for EVERYTHING in Pgh amaze me! I vote for Indy! <3
    .-= Mrs. Money´s last blog ..12 Days of Christmas Costs How Much in 2009? =-.

  3. Just sayin’…. you should move to Indianapolis ;-) And, speaking from experience in the Indy suburbs, a $1,000 payment including everything listed will get you much more than a $115,000 house.

    What that (or any) housing cost calculator doesn’t take into account is the biggest “hidden” cost of home ownership that I (and most of my friends that have bought their first home) was surprised by… the maintenance and upkeep costs of a house. It will cost more than you think. There’s always a project to be done.
    .-= joanna´s last blog .."Church service" of a different sort =-.

  4. There sure is a wide variety in property taxes! We live out in the country so ours are less.

    Our taxes are $1250. The winter bill came the other night and I told my husband that we would need to start using the library and the jail more because we sure are paying for them. I asked which he wanted to do first : )

    Trixie
    .-= Trixie´s last blog ..Home for the (Stress Free) Holidays: No Debt =-.

  5. If you look at a county outside of Allegheny, you’ll save a lot on taxes. We just purchased our house for $260,000 in Butler county and our taxes are $3400.

  6. Yeah, Allegheny County taxes are nuts. Living outside of it though would be way too long of a commute for my husband, who works downtown. It’s long enough as it is already! Plus, with the county assessment system in the state supreme court, I’m not convinced that everyone’s taxes will stay low in those places. It’ll be interesting to see what happens when the dust settles with all that.

    Congrats on your new house!

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

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