🏠 Home Affordability Calculator

Version: 4.3.1

Target Audience: Young professionals (22-29 years old) planning their first home purchase

Key Benefits:

• Calculate exact home price you can afford
• Compare different down payment strategies
• Understand your debt-to-income ratio
• Get personalized recommendations
• Plan your path to homeownership

© 2025 Future Millionaire Playbook by Raymond Sura
All rights reserved.

Why Your Income Matters

Your income is the foundation of your home buying power. Lenders typically allow you to spend up to 28-43% of your gross monthly income on housing costs.

What We'll Calculate:

• Maximum monthly payment you can afford
• How different income levels affect your budget
• The impact of additional income sources
• Your debt-to-income ratio

💡 Pro Tips:

• Include all stable income (salary, bonuses, side hustles)
• Higher income = more borrowing power
• Consider your income growth potential

Why Existing Debts Matter

Your existing monthly debt payments directly reduce how much you can spend on a mortgage. Lower debt = higher home buying power!

What We'll Analyze:

• How much debt payments reduce your buying power
• Your total debt-to-income ratio
• Strategies to optimize your debt load
• The impact of paying down debts first

💡 Pro Tips:

• Pay down high-interest debt first
• Every $100/month in debt you eliminate = ~$15,000 more house you can afford
• Don't take on new debt before buying

Why Down Payment Strategy Matters

Your down payment percentage affects your monthly payment, PMI costs, and loan terms. Different strategies work for different situations!

What We'll Compare:

• 3% down (FHA) - Lowest barrier to entry
• 5% down (Conventional) - Lower PMI costs
• 10% down - Better loan terms
• 20% down - No PMI, maximum savings

💡 Pro Tips:

• 20% down eliminates PMI (saves $200-400/month)
• Lower down payment = higher monthly costs
• Consider first-time buyer programs
• Factor in closing costs (2-5% of home price)