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Buyer's Guide
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Mortgage > How Much Mortgage
How Big a
Mortgage Can I Afford?
Not only does owning a home give
you a haven for yourself and your family, it makes great financial
sense, too
This calculation assumes a 28
percent income tax bracket. If your bracket is higher, your savings
will be, too
Rent: _________________________
Multiplier: X 1.32
Mortgage payment:
__________________
Because of tax deductions, you
can make a mortgage payment—including taxes and insurance—that is
approximately one-third larger than your current rent payment and
end up with the same amount of income
For more help, use Fannie Mae’s
online mortgage calculators
at
http://www.fanniemae.com/home
buyers/calculators/index.jhtml?p=Resources&s=Calculators
Reprinted from REALTOR Magazine Online by
permission of the National Association of Realtors
Copyright 2005 All Rights Reserved
www.REALTOR.org/realtormag
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