Remember to add monthly taxes, utilities and insurance to this figure to be more exact. 

• Keep in mind that credit history, property condition, job stability and other factors may affect the lender's final decision.

• Another  way to  give you an idea of how much of a mortgage payment you can afford is to use the following 28% -36% test

First, calculate your gross monthly income (before deductions). You can use income from borrower, co-borrower, alimony, child support (if 5 years remaining), second job (if have 2 year history), Social Security, disability etc. (if 5 years remaining), stock dividends, and investment income. 

Multiply this gross monthly income by 28%

Multiply this same gross monthly income by 36%, then subtract monthly debt payments (auto loan, store charge cards, primary credit card, other credit cards, other loans)

The lesser of the 2 tests equals the maximum mortgage payment for which you can qualify. Before using the payment table, remember to subtract monthly taxes and monthly insurance.

30-Year Conventional Mortgage Payment Table

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• If possible, visit a potential getaway for two or more years in a row.
• Camp out on that mountain site you're thinking of buying.
• Take home-swap vacations to check out different locales.
• Take a virtual vacation, touring homes and locations on the Internet.

• What hobbies do you want to indulge or develop? Does your dream include great fishing, or perhaps a nearby town dotted with antique shops or a great flea market?
• Do you crave peace—or partying? If serenity is at the top of the list, you might want to choose a lake that allows only canoes and johnboats with trolling motors. No noisy jet skis!
• How often do you plan to get away? It's easy to "vacation" every weekend if you choose a site that's a two- or three-hour drive from home.
• How much light do you need? A log cabin in the woods is fine if you fantasize about Davy Crockett's wild frontier. If you lean toward light and airy, think bright beach house instead.

• What's the quality and accessibility of health care?
• Is the area safe, the crime rate low?
• What's the cost of living?
• Are there opportunities for part-time work?
• Is the climate comfortable?
• What are the cultural and educational offerings, such as Elder Hostel programs?

Shop around for the best interest rate if you want a fixed-rate mortgage on the property. Depending on how long you plan to own the property, consider exploring adjustable-rate mortgages with, for example, fixed interest and monthly payments for five to seven years. If sellers own the property outright, ask if they would consider seller financing. You may be able to negotiate a lower interest rate, a lower down payment, and a flexible payment plan.

Renting out your retreat 

One way to defray the costs of owning a second home is to rent it out when your family isn't using it. Here are some things to consider:

• If the home is in a development with a homeowners association, ask if you're allowed to rent out your home. The answer may be no.
• Limit wear and tear by renting only by the month or the season.
• Use word-of-mouth advertising; rent to friends (or friends of friends) who may be more likely than strangers to treat your place with care.
• It takes time to handle inquiries and deal with potential renters yourself. Is it worth the expense of hiring a rental manager who will schedule renters and handle emergencies and maintenance?
• You may want to add amenities, such as hot tubs, televisions, gas grills, and a modern kitchen, to keep renters coming back. You'll also want a locked storage room or closet for your family's possessions.

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