How Much House Can I Afford? A Buyer’s Guide for Southwest Michigan

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Aug 6
2 min read

How Much House Can I Afford?

If you’re starting the journey to homeownership in Southwest Michigan, the first question on your mind is probably:“How much house can I actually afford?”

At the Keefer Fischer Real Estate Team, we help buyers across Kalamazoo, Portage, Battle Creek, and Mattawan answer this question every day. Here’s how to figure it out.

The 28/36 Rule

Most financial experts recommend following the 28/36 rule:

No more than 28% of your gross monthly income should go toward housing (mortgage, taxes, insurance).
No more than 36% of your income should go toward total debt (housing + car loans, student loans, credit cards, etc.).

Factors That Affect Affordability

Income – Your stable monthly income is the biggest factor lenders look at.
Debt-to-Income Ratio (DTI) – Lenders compare your debts to your income to ensure you’re not overextended.
Credit Score – A higher score often means better loan terms and lower rates.
Down Payment – The more you put down, the lower your monthly payment will be.
Interest Rates – Rates directly impact affordability. A 1% difference can mean hundreds of dollars monthly.

Example in Southwest Michigan

Let’s say you earn $75,000/year ($6,250/month) with little debt. Using the 28% rule, your housing budget would be about $1,750/month. Depending on your down payment and interest rate, that could equal a home price around $250,000–$300,000 in the Kalamazoo or Portage area.

In Battle Creek or Mattawan, where home prices can differ, your buying power may stretch further.

How to Find Your Exact Number

While online calculators are helpful, the best way to know how much house you can afford is to get pre-approved with a local lender. Pre-approval gives you a clear number, strengthens your offer, and helps you shop with confidence.

How We Help Buyers

At the Keefer Fischer Real Estate Team, led by Kerry Keefer Fischer, we make the process simple by:

Connecting you with trusted Southwest Michigan lenders
Helping you understand your true monthly costs (mortgage, taxes, insurance)
Guiding you toward homes that fit your lifestyle and budget

Ready to Find Out What You Can Afford?

Buying a home is exciting — but it starts with knowing your numbers. Whether you’re looking in Kalamazoo, Portage, Battle Creek, or Mattawan, our team will walk you through every step to make sure your dream home also fits your budget.

Contact the Keefer Fischer Real Estate Team today to start your homeownership journey with confidence.