Your home may appreciate in value.
You can build equity to use for home improvement loans, education and other expenses
Your home is your own – you can do what you like with it to reflect your lifestyle.
You may save money at tax time by deducting mortgage interest and property taxes.*
While these costs will vary from home to home, you’ll want to know what they are before making a final purchase offer.
1) monthly principal reduction payments
2) your home potentially increasing in value over time
You may be able to deduct your interest and property tax (consult a tax advisor to further discuss)
Depending on the amount you have saved for a down payment, your mortgage payment should typically be no more than 28% of your monthly income, and your total debt should be no more than 36%, although debt ratios have some flexibility, depending on the mortgage type you choose.
You can calculate your monthly housing budget by taking your total income, then subtracting:
The result is the money you could have available to budget for housing.
Generally, a better credit score will help you get a better interest rate on your mortgage. And even a small improvement in your score can have an impact on your monthly payment and potentially save you thousands of dollars over the course of your loan.
Lastly, you’ll need to have some money tucked away for extra costs beyond your monthly mortgage payment. These costs include your down payment and closing costs.
PMI is a special insurance policy that allows borrowers the flexibility to make down payments smaller than 20%. It protects your lender in case of default on the payments. If your mortgage requires PMI, PNC gives you the option to pay the PMI premium in a single lump sum at closing or as part of your monthly mortgage payment.
Find the home that fits you and your budget. Determine a mortgage payment that you can afford, based on your actual budget and lifestyle. Or start shopping for homes with real‐time rates and loan products.
Read about the different mortgage products to better understand which type of mortgage fits your unique situation.
Whether you are just starting your search or have a home in mind, PNC can help you get started.
For Adjustable Rate Mortgages loans ("ARMs"), rates may increase after settlement.
Preapproval is not a commitment to lend, a condition of loan approval or an application for credit.
*Consult a tax advisor regarding the deductibility of interest
PNC, PNC HomeHQ, PNC Home Insight and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ("PNC"). PNC has a pending patent application directed at various features and functions of Home Insight® and Home Insight® Planner. All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal.
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