I heard that a certain amount of your salary that you make in one year is supposed to be a certain percentage of the cost of your house. Does anyone know what that percrentage is?
2007-03-24 17:58:00 · 5 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment
about 29% and 41% should be the total of all of your debt payment including car and other monthly debt.
2007-03-24 18:02:37 · answer #1 · answered by moonman 6 · 0⤊ 0⤋
I think the answer isn’t necessarily a percentage. I think the easiest way to quickly figure this is:
Figure out how much money you take home every month assuming your W4 info is correct do not over or under estimate your taxes. Then deduct ALL expenses that are not related to rent or current mortgage. This dollar amount is the maximum you can afford to pay for all housing expenses.
All housing expenses includes mortgage, tax, insurance, association, mellow rous, etc…
Ps don’t get ARM’s, Interest only, balloon, etc risky loans.
Hope this helps
Hate to say what we want in a house is not always what
2007-03-25 01:12:12 · answer #2 · answered by Derek 2 · 0⤊ 0⤋
There use to be a standard that you could afford to spend a third of your income on housing. As housing prices have increased, that is often not enough; nowadays, it is whatever the lenders will put up with.
2007-03-25 01:02:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
There are mortgage calculators online that can help you with this. You fill in the variables (salary, debts, property taxes, etc) and it calculates how much house you can afford.
2007-03-25 01:02:46 · answer #4 · answered by kitty-mama 4 · 0⤊ 0⤋
30 Here
2007-03-25 01:05:56 · answer #5 · answered by gg 4 · 0⤊ 0⤋