How much home can I afford?
How much home can I afford? Determining how much house you can afford based on your salary involves several factors beyond just your income. Here's a simplified way to get a ballpark figure, but remember, it's essential to consider all aspects of your financial situation. Here's a mortgage calculator you can work with: https://www.successmortgagepartners.com/mortgage-calculators/ General Rule of Thumb : A common rule is the 28/36 rule, which suggests that you should not spend more than 28% of your gross monthly income on housing expenses and not more than 36% on total debt, including housing and other debts like car loans and credit cards. Calculating Based on Salary : Monthly Income : First, calculate your monthly gross income (before taxes). If you have a yearly salary, divide it by 12. Housing Expense Limit : Multiply your monthly gross income by 0.28 (28%) to get the maximum you should spend on housing expenses. Total Debt Limit : Similarly, multiply your monthly gr