Home Value: $ Loan amount: $ Interest rate: % Loan term: years Start date: JanFebMarAprMayJunJulAugSepOctNovDec 2012201320142015201620172018201920202021202220232024202520262027202820292030 Property tax: % PMI: % Output parameters » Draw charts Monthly vs bi-weekly payments Show annual amortization table Show monthly amortization table

Or

Use this simple formula to determine how much you can afford to spend on a house.

1. Multiply your monthly income before taxes by 36% (.36). (You multiply by .36 because lenders limit total monthly expenses to 36% of your monthly pre-tax income)

2. Subtract your monthly expenses for:

• Property taxes for the home you want
• Homeowner’s Insurance
• Credit Cards
• Car loans
• School loans
• Any other debts you have

3. This amount is what your maximum monthly mortgage payment can be.

4. Multiply by 12 (for months in a year) This is what your total annual mortgage payment can be.

5. Divide by the current interest rate. This total is the maximum mortgage you will qualify for.

6. Add your down payment.

This total is the approximate amount you can comfortably spend on a home.

* NOTE * This is only a preliminary estimate

If you need to know more please contact a lender:

• Frederick County Bank: Ann Seiss 301-620-1400 Email: [email protected]
• Wells Fargo Susan Caulfield 301-696-0033 Email: [email protected]
  
• Presidential Mortgage: Mark Wharton 301-694-1500 Email: [email protected]