Now you have to go to a mortgage calculator (click here) and plug in some numbers. In the "payment" area, put the figure you just calculated. Plug in the current fixed interest rate. If you are putting less than twenty percent down, add a half percent to the rate to allow for charges you will pay for mortgage insurance.
Hit the calculate button and you should have your maximum mortgage amount. Add your down payment and you know your maximum purchase price.
Maybe. You may have to do some fine-tuning to zero in on the exact figure. Plus, lenders know how to "stretch" a client a bit higher if they need it.
