How much house can I afford?

Many lenders use two ratios as a guide. Housing costs should not exceed about 28% of your gross monthly income, and total debt payments, including housing, about 36%.

On a gross income of 6,000 a month, 28% is 1,680 for housing and 36% is 2,160 for all debts together. If you already pay 500 a month on other debts, housing is limited to 1,660.

A monthly payment of 1,680 on a 30-year loan at 6.5% supports a loan of roughly 265,800, because each 1,000 borrowed costs about 6.32 a month. Add your down payment to get the price you could look at.

Use the mortgage calculator to try different rates and terms. A one-point change in the rate can change the affordable loan by tens of thousands.

Property tax, home insurance, mortgage insurance and association fees come on top of principal and interest. Maintenance is another cost: many owners budget 1% of the home's value each year.

Count these before you decide, because they can add several hundred a month to your housing costs.

A lender may approve you for more than is comfortable. Consider your savings buffer, job stability and other goals before borrowing to the limit.

This guide is general information. For personal advice, speak with a licensed mortgage adviser.