Vision Realty

How Much Can I Afford?

You must talk to a local lender and determine how much house you can afford! Nailing down your budget early will make the overall process more streamlined and less stressful.

How much can you afford:

The 28/36 Rule

The 28/36 rule is an established benchmark used by many lenders to determine how much credit to offer you. Here's how it works:


Get preapproved for a mortgage. Your lender can approve you for a loan amount which you will need to start your home search.  


The "28" refers to the notion that no more than 28 percent of your gross monthly household income should go toward housing costs, which include mortgage principal, interest, taxes and insurance.

To calculate, simply multiply your gross monthly income (amount before taxes) by .28. Use this amount as a guide for how much house you can afford.

Example: You earn an annual salary of $50,000. Divide 50,000 by 12, giving you a monthly gross income of $4,166.67. Multiply that by .28, and you'll find you should spend no more than $1,166 each month on total housing costs.

The "36" part of the 28/36 rule refers to your overall debt, which shouldn't exceed 36 percent of your income. This is very important to consider because debt loads – such as car and credit card payments on a monthly basis– impact the amount you can afford to spend on a house.

If you are a first time home buyer don't forget to figure taxes and insurance in on that monthly payment you just came up with.

Get In Touch

Local Expert Updates

Darla Van't Hul Sales Associate (Real Estate Agent)

Darla Van't Hul

Sales Associate

712.578.9621

712.722.0045


Darren Van't Hul  (Real Estate Agent)

Darren Van't Hul

712.578.9114

712.722.0045


Kristin De Jong  (Real Estate Agent)

Kristin De Jong

712.722.0045


Kimberly Dekkers Sales Associate (Real Estate Agent)

Kimberly Dekkers

Sales Associate

605.610.5138

712.722.0045


Rachel Hoogeveen Sales Associate (Real Estate Agent)

Rachel Hoogeveen

Sales Associate

712.441.5100

712.722.0045


Community Updates

Darla Van't Hul Sales Associate (Real Estate Agent)

Darla Van't Hul

Sales Associate

712.578.9621

darlamaevh@gmail.com

How to Kick Back, Relax, and Vacation at Home

Hull

Traveling to a tropical resort isn’t your only vacation option. This summer, plan a “staycation” and unwind within (or just outside) your own four walls.

More Info
Kimberly Dekkers Sales Associate (Real Estate Agent)

Kimberly Dekkers

Sales Associate

605.610.5138

kadekkers@icloud.com

Steps to Buying a House Checklist

Hawarden

Now that you’ve found your dream home, here’s how to breeze through the buying process. Get detailed instructions: How to Buy a House

More Info
Donna De Weerd Broker/Owner (Real Estate Agent)

Donna De Weerd

Broker/Owner

712.441.5627

donnadw@mtcnet.net

Seven Reasons to Make Sioux Center Your Home

Local Happenings

Sioux Center is growing so fast! We are finding that families are moving here for a variety of different reasons and we would like to share just a few with you. Small town feel with the big city

Your browser is out-of-date!

Update your browser to view this website correctly.

Update my browser now

×