As you set out on your home search, it is important to understand what kind of home you want and can afford, what your monthly payments could be, and how much to save for a down payment. We believe that having a holistic picture of all of these financial considerations puts home shoppers in a stronger position and can help them stay on budget.
Whether you are beginning your search or have already spent time exploring neighborhoods, you may be wondering, “What can I afford?” That’s why at realtor.com, we have a whole team dedicated to helping home shoppers answer that question.
Along with tools such as Price Perfect which provides insights on the average market rate of a home for different home features, we recently launched the “How Much Home Can I Afford?” Calculator available on iOS, Android, and Web. The freshly designed calculator addresses two components of the affordability topic that consumers want answers for, “How much can I afford?” and “How much do I want to spend?”
When we began designing the calculator, we wanted to provide home shoppers the opportunity to see how various financial considerations come together to answer questions related to affordability. By inputting details such as annual income, monthly expenses, desired neighborhood, expected down payment, and credit score, home shoppers can calculate how much they can afford to spend on their new home and see how what they spend on a down payment impacts their options.
Interface of “How Much Home Can I Afford?” Calculator on mobile web.
Once you know what you can afford, our newest features can be utilized to understand the estimated monthly costs associated with the home. By entering anticipated numbers of a home price and down payment, as well as information related to loan type and interest rates, the realtor.com “Monthly Cost Calculator,” available on iOS and Android, provides a detailed and transparent look at the estimated monthly payments of a new home. And if you are unsure about some of the numbers to enter, the feature will use averages that you can update later.
With all of this information in hand, perhaps you would like to conduct your home search specifically focused on the monthly cost of a home. By leveraging the new realtor.com “Monthly Payment Filter” available on iOS, you can see all of the homes for sale that meet your search and budget criteria. Simply enter a home search, tap “Filter,” and select “Monthly Payment” to enter your expected down payment and monthly mortgage budget.
The feature can be especially helpful for first-time home buyers who are familiar with paying monthly rent, but may not be accustomed to budgeting based on total home price. We are proud to share that this feature is an industry first among national real estate portals and are excited to see how it can serve as one of the many features that aid home shoppers in their search.
Making the decision to set out on a home search is a big one that leads to all sorts of financial considerations. When we are designing tools and features with this in mind, our goal is to help make those considerations as seamless as possible. Because at the end of the day, it’s about finding the right home, and the right price, for you.