Once you know how much you can borrow add to that your down payment to calculate the maximum house price you can afford. In this example, the maximum loan amount is calculated at $203,000. If you have a $20,000 down payment, you can purchase a $223,000 house. The higher your down payment, the higher the purchase price you can afford.
If $1,200 a month doesn’t strap you for cash, you can probably afford that much for a mortgage payment. If you feel more comfortable borrowing less than the amount shown your loan preapproval letter, then do so.
How Much Will My Mortgage Be With Pmi Understanding Mortgage Insurance: What’s the Difference Between MIP and PMI? – should the borrower default on the mortgage. And just how much are we talking? Typical PMI rates run about 0.5 to 1 percent of your loan balance per year. But, Patty Leonard, senior residential loan.