After doing some research into free online calculators, I have found that there are a number of free tools to help potential home buyers decide how much home they can afford to buy. What seems to be the biggest question from most buyers is how to figure closing costs. This particular calculator offered by the NAR was recently noted by BusinessWeek as being one of the best. It can be found at http://www.realtor.com/home-finance/financial-calculators/home-affordability-calculator.aspx.
What I like about this particular home affordability calculator is the ease with which you can find help when needed to understand what is being asked for to get the truest result.
According to the Web site, “Typical mortgage lending guidelines are applied, using the (1) financial data you’ve provided and (2) estimates for other parameters such as tax and insurance, which you can also adjust. Three tests are run:
- The “Housing Expense to Income” ratio
- The “Long-term Debt to Income” ratio
- The “Minimum Down Payment” requirement
One of these three tests will be a constraint on your ability to buy a more expensive house”
This is however only a planning tool. For more precise guidelines and costs try www.RussTannerLoans.com. If you are looking for local market conditions also take a look at www.AthensHomeTrends.com for Market Snapshots. The most impressive market analysis tool out there!
