If you've been thinking of buying a house, you probably know that you should start saving up toward a down payment. However, if you've ever asked yourself how much you should be saving, you're not alone. I've broken down the math for you below. Use these equations - and calculators - provided to figure out your savings goal.
Find out how much you can afford to pay in housing costs each month
Conventional wisdom states that housing expenses should never exceed 28% of your total monthly income. Using that figure, if you make $5,000 per month, that would translate to a monthly housing payment - which should include additional costs like taxes, mortgage insurance, and HOA fees - of $1,400 per month.