Calculating Monthly Mortgage Payments

Buying your first home in Utah or anywhere around the country would require getting your finances in order first—and yes, you may need to take out the good ol' calculator from your drawer for this.

The first step is to figure out how much you can afford to pay for mortgage. To calculate this, you need to consider your gross household income, i.e., your own plus that of your partner or spouse (if any), along with any other income you may have, either from a part-time job or a small business on the side, and consider this as Figure A. Afterward, compute for your household expenses by adding together how much you spend for groceries and gas and your monthly bills--utility, credit cards, mobile phones, car loans, student loans, and others; consider this as Figure B.

Typically, the result of subtracting Figure B from Figure A will give you an idea of how much you can still spare to pay for your mortgage. However, keep in mind that you also need to allot funds for health emergencies, household repairs, and baby things, so you need to factor all of these as well. Once you have worked them all into the equation, you'll have a good idea of a manageable monthly mortgage payment for yourself.