The single most important aspect of your home purchase is the loan, or mortgage, you obtain. The amount of this loan will be decided by the price of the home and your down payment.

Generally, the amount of your down payment and income/debts control the price range of homes you can look for, and hence, the size of loan you will need.

A lender will analyze your income to determine your ability to repay the loan. A general rule of thumb to calculate how much loan payment you can handle is to figure 25-28 percent of your gross, pre-tax monthly income.

The interest rate and the principal amount of the mortgage will determine the amount of your monthly payments. The higher the interest rate, the higher the monthly payments. The following Mortgage Calculator will help you figure the maximum payment you can afford. Note that you must also add property taxes, home insurance costs, and homeowner's association fees, if any, to these figures for a complete, realistic monthly obligation.