How much house I can afford?

To buy, or not to buy. That is the question. And if I buy, how much house can I afford? These are complicated questions involving mortgage payments, tax deductions, property tax rates, realtor fees and other stuff usually left to accountants.

The key financial difference between buying and renting is that interest on your mortgage is deductible (which means you don't pay taxes on that money). Since rent is not deductible, the effective cost of owning is lower than it appears when compared to rent you are already paying.

This calculator itemizes the major differences between owning and renting. It calculates costs on a monthly basis for easy comparison with your rent. It assumes you can spend no more each month for a home than you would if you keep renting. If you can afford more, adjust the "Current Monthly Rent" accordingly.

The numbers already entered below are assumptions we feel are reasonable for this area. Feel free to adjust them for your circumstances.