Rates moved again this quarter, and if the last time you ran the numbers was more than a few months ago, your idea of "affordable" is probably out of date. The good news: the math hasn't gotten more complicated — it's just working off different inputs.
Start with your monthly budget, not the sale price
Most buyers start by browsing listings and working backward. That's the wrong direction. Start with what you can comfortably pay every month, then let that number tell you the price range — not the other way around.
A simple rule of thumb: keep your total housing payment, including taxes and insurance, under 28% of your gross monthly income. It's a starting point, not a hard ceiling, but it keeps you from being "house poor" the moment you move in.
Why the rate matters more than the price tag
A one-point difference in your interest rate can swing your buying power by tens of thousands of dollars. That's why locking in the right rate — not just the lowest advertised number — is worth the extra week of shopping around.
- 30-year fixed: lower monthly payment, more total interest over time
- 15-year fixed: higher monthly payment, builds equity much faster
- Adjustable rate: lower initial rate, resets after the fixed period ends
