Of course, a great deal depends

upon interest rates, which some say are currently at their lowest in 40

years but could go back up at any time, according to experts. But some

guidelines are fairly standard.

One way to find out how much

you can afford is by calculating how high your monthly payment can go.

Generally, a lender will want your monthly mortgage payment to total no

more than 29 percent of your monthly gross income before taxes and other

deductions are taken out according to the U.S. Department of Housing and

Urban Development's Web site (www.hud.gov). From there, obviously, the

lower the interest rate, the more expensive the home you will be able

to afford.

HUD has a considerable amount

of information on its Web site about buying a home. You can download a

small booklet entitled "Looking for the Best Mortgage: Shop, Compare,

Negotiate." It has information about what various mortgage-related

terms mean, what to ask prospective lenders, and more.

You'll want to compare all

of the costs involved in obtaining a mortgage. Shopping, comparing and

negotiating may save you thousands of dollars.

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