moving to Annapolis maryland- what home can I afford?

[Susie]

I will be moving to Annapolis this year and am looking to buy a home there (unfortunately very expensive real estate in that area). The homes I'm looking at are in the 300,000 range. This will be my first time applying for a home loan, and I'm confused about how to calculate what I can afford. Currently own my present home (no mortgage payments). If I make 60,000 a year, have 100,000 available as a down payment, and a "good" credit score, could someone give me an idea of the home loan amount I could get? Thanks!

[Wyoming53]

You'll need to look at an amortization table of what the interest would be and how much the principle (what you would be financing) would be. Then figure it over 20 years of payments, or 30 years of payments. Interest rates will be different for 20-30. Then figure your monthly payment. If your monthly payment is 1/4th of your monthly income or less, your pretty much a shoe in. If it's more then 1/4th, then your going to have to play with the financial institutes to figure out what you can do.