Jeni VanOrnum | Real Estate Insights & Education

“How much house can I afford?” is the first question every Douglas County first-time homebuyer asks. I’m Jeni VanOrnum, your local real estate agent, breaking down exactly how to calculate your homebuying budget in 2025.

The 28/36 Rule Still Applies

Lenders typically use this guideline: housing costs shouldn’t exceed 28% of your gross monthly income, and total debt shouldn’t exceed 36%. If you earn $7,000 monthly, your housing payment should stay under $1,960, with total debt under $2,520.

What’s Included in Your Payment?

Many first-time buyers forget that monthly payments include more than principal and interest. You’ll also pay Douglas County property taxes (approximately 0.5% of home value annually), homeowners insurance ($1,400-$2,200 yearly in 2025), HOA fees (common in Castle Rock and Parker communities), and PMI if you put down less than 20%.

2025 Affordability Examples

With current interest rates, here’s what different incomes can afford in Douglas County:

• $80,000 income: $325,000-$375,000 home
• $100,000 income: $400,000-$475,000 home
• $130,000 income: $525,000-$600,000 home

These assume minimal other debt and standard down payment assistance programs.

Don’t Forget Closing Costs

First-time buyers often overlook closing costs, typically 2-5% of purchase price. On a $425,000 home, budget $8,500-$21,250. However, down payment assistance programs and seller concessions can help cover these costs in 2025’s market.

Online Calculators vs. Reality

Online mortgage calculators provide estimates but don’t account for Douglas County-specific factors like varying property tax rates between Castle Rock, Parker, and Highlands Ranch, or HOA fees in different communities ranging from $50-$300+ monthly.

The True Cost of Homeownership

Beyond your mortgage payment, budget for utilities (higher in larger homes), maintenance (1% of home value annually), repairs and replacements, homeowner association assessments, and an emergency fund for unexpected issues.

Get Pre-Approved for Accuracy

The best way to know exactly what you can afford? Get pre-approved with a lender who understands Douglas County first-time buyers and current 2025 lending standards.

Work With Jeni VanOrnum

Ready to determine your exact homebuying budget for 2025? Contact me today. Together, we’ll ensure you’re shopping in the right price range and maximizing your buying power.