How much house can I afford?

Buying a home can be a trying task. It is not necessary that the first home you buy has to be your dream home. Nevertheless, it calls for lot of cool headed calculations. There are many factors that are considered. The first thing that you are required to do is find out how much house you can afford. You can use the "how much house can I afford" calculator. Once you are confident with your finances you should take the plunge and buy a house. The mortgage calculators can be of great help if you want to find out your home affordability, interest rates, monthly mortgage payments, loan term, whether opting for FRM will benefit you or opting for ARM will be a better option.

The prevailing mortgage rates are low and if you have enough cash, you can buy a home. Many houses are also facing foreclosure. Reports suggest that Memphis (Tennessee) is a good place for making real estate investment. The real estate market in Memphis has shown a steady rise in employment and the houses that are facing foreclosure are being sold for a dollar range of USD$40,000 to USD$60,000.

The mortgage market has shown signs of revival but the pace is almost negligible. There is however, an air of optimism in the financial markets. The sale of single home units have increased, if not remarkably but comparatively. President Obama introduced the Mortgage Bailout Plan to help homeowners who are facing foreclosure. His Make Home Affordable plan is expected to bailout as many as 4 million to 5 million homeowners.

Mortgage Bailout Plans are usually introduced by the government when the real estate market is in a bad shape and needs a boost to recover. The mortgage bailout program introduced by Obama Administration in February 2009 failed to yield desired results as it addressed the needs of homeowners with primary mortgages. So, only those homeowners who qualified for the program were able to enjoy the benefits of the program.

In order to extend help to homeowners with second mortgages, President Obama introduced an expansion of the Make Home Affordable Plan in which the homeowners with 2nd mortgages will enjoy reduced interest rates and payments. It has been decided that every homeowner will be in a position to pay 1% less towards interest rate payments.