Online calculators are a helpful tool to estimate mortgage payments, though we always recommend budgeting conservatively because of the associated expenses in buying a home.
Determining what you can afford and setting a realistic budget should be the first step in your home buying process. Consider your yearly income and expenses, and how a mortgage will impact these expenses. If you have a fixed income, calculate a reasonable monthly mortgage payment and factor in all the additional expenses that come with being a homeowner like property taxes, insurance, and repairs. If you have a commission-based position or if your income fluctuates, it will be essential to determine what your baseline monthly income is before calculating what you can afford. Online calculators are a helpful tool to estimate mortgage payments, though we always recommend budgeting conservatively because of the associated expenses in buying a home.