Home ownership can be one of the most rewarding accomplishments of your adult life, and thanks to some recent and very promising market trends, now might be the perfect opportunity for you to take advantage of historically low 30 year fixed mortgage rates.
A combination of local cost of living, recent real estate transactions, and low interest rates just might be the perfect situation for you to expand your assets, build equity, and settle into your very own home. Many people may be surprised to learn that they can actually buy a house for less than what they are paying for a rental!
A home affordability calculator is a great way to estimate the type, size, and price of home that you may be able afford based on a variety of factors.
Realtor.com Home Affordability Calculator
Realtor.com features a great system that allows users to customize their approach based on conservative, moderate, or aggressive investing strategies. They also offer advanced options which consider additional fees and homeowner’s insurance rates to create a more accurate depiction of what you may be able to afford. We really like Realtor’s approach because it factors in the location in which you are shopping, something that makes a huge difference in the housing market, and an aspect that many other calculators fail to include.
CNN Money Home Affordability Calculator
CNN Money also offers a very basic calculator, but unfortunately does not provide as many customizable options to fit a potential buyer’s individual situation. Their generator is not very conservative, and maxes out the suggested 30% of income going toward housing expenses. Although this calculator paints a very promising picture for shoppers, it is probably not an accurate depiction of what a bank would approve in terms of lending.
Zillow Home Affordability Calculator
Lastly, Zillow’s calculator provides a moderate approach with customizable options similar to those of Realtor.com. Unlike other calculators, Zillow features a full report PDF that allows shoppers to break down loan payments in terms of principal and interest, visualize an overall budget based on monthly income, as well as break down housing costs into categories like taxes, insurance, and loan payments. Not only are these numbers and depictions very interesting, but they can more accurately predict if a buyer is in a realistic position to purchase.
After exploring the various free calculators, if you think you are in a position to purchase a home, these ideal buying conditions may not stick around for long. Take advantage of these impeccable circumstances, and give us a call today. Not only will Lime Rock Realty assist with finding the home of your dreams, but we can also direct you to trusted lending professionals who can help you take the steps necessary for obtaining home loan approval.