Even if you’re not thinking about selling your home, you might be wondering how much of a new home you can afford. You might see a house for sale in a nice neighborhood, for example, and think, “Could I get into a house like that? Is that even possible?”
Why not find out?
It only takes a few calculations to determine how much of a new home you qualify to buy. The calculation involves estimating how much you can get for your house on today’s market, taking a look at the type of home you want and determining what a house like that is currently selling for, and then taking into consideration your income, savings and other financial resources.
Once you put it all together, you’ll have a price range within which you can confidently shop for a new home.
This exercise might surprise you. You might find out you can afford to get into a home and neighborhood you’ve always dreamed about. It’s worth finding out!