too many answers! (PMI, loan, real estate, approved)

[SadieLu]

As many different calculators on "how much house can I afford" I've seen is how many different and widely varied responses I've gotten! Maybe someone on here can give me a clearer picture...
Mary and John looking for a house...combined wage income of $150K/yr, no car loans, $500 student/credit card pymnts/month, RE taxes would be around $9500...looking for FHA with 3.5% down (around or less than $18K). Oh, and FICO scores low 700's and high 700's.
Anyone?

[loweyecue]

Here is what I found, seems to be reasonable based on past experience with this type of calculations.

Definitions
Monthly income: Total monthly income from all sources. All income should be entered before taxes.
Monthly housing expenses: Your monthly housing expenses from the housing expenses worksheet. The items entered as housing expenses make up the taxes and insurance portion of your monthly housing payment.
Monthly liabilities: Your monthly liabilities from the liabilities work sheet. Your monthly liabilities are used to calculate your maximum monthly house payment.
Monthly housing payment (PITI): This is your total principal, interest, tax and insurance, or PITI, payment per month. This includes your principal, interest, real estate taxes, hazard insurance, association dues or fees and principal mortgage insurance, or PMI. Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

1. Monthly Income X 28% = monthly PITI
2. Monthly Income X 36% - other loan payments = monthly PITI

[suzie02]

Originally Posted by SadieLu

As many different calculators on "how much house can I afford" I've seen is how many different and widely varied responses I've gotten! Maybe someone on here can give me a clearer picture...
Mary and John looking for a house...combined wage income of $150K/yr, no car loans, $500 student/credit card pymnts/month, RE taxes would be around $9500...looking for FHA with 3.5% down (around or less than $18K). Oh, and FICO scores low 700's and high 700's.
Anyone?

If you do not know how much you can afford per month then you are probably not ready to buy a house. You should never purchase the max you can afford or the max the bank will lend. Figure out what your needs and your wants are then buy the cheapest house that meets all your needs.
Trust me you will be much happier with a lower mortgage payment.

[Green Irish Eyes]

I think the OP's question, actually, is how much mortgage they'll qualify for. I've found that online calculators are notoriously fickle and can give widely varying answers, even when the same information is input.

[SadieLu]

Originally Posted by squeezeboxgal

I think the OP's question, actually, is how much mortgage they'll qualify for. I've found that online calculators are notoriously fickle and can give widely varying answers, even when the same information is input.

Exactly! Thank you, SBG!!
Maybe I misworded my question...I'm not looking for "how much house"; rather how much mortgage could/would M&J get approved for.