You're looking to buy a new home and running all of the numbers, but you're worried about accidentally buying more home than you can afford. Fortunately, there are a few ways to tell.
First off, many industry professionals simply use 28 percent as their guideline. First, take all of the money you make every month. Then look at the cost of your mortgage. Be sure to include everything, from the principle payment to the insurance to the escrow accounts. The total you get shouldn't be more than 28 percent of your earnings.