How Much House Can I Afford?

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The quick answer: 28%  of your income is the maximum amount you should spend on your house payment.

The hardest part of the home-buying process is figuring out what is affordable. Some first-time buyers rely on the amount the bank is willing to lend. Others use a lender’s mortgage calculator to crunch a couple of numbers. However, banks are often willing to lend much more than you can afford, and mortgage calculators don’t always tell the whole story. To learn how much home you can afford, start with the basics.

 

 How Much Can You Pay Each Month?

Rather than focusing on the purchase price or lender offers, decide how much you can spend on a mortgage payment each month. A common rule of thumb is that your mortgage payment should be between 25 and 30 percent of your income. In truth, 30 percent is too high for many people.

How Much House Can I Afford

Annual IncomeMaximum Payment
40,000$1,120
50,000$1,400
60,000$1,680
70,000$1,960
80,000$2,240
90,000$2,520
100,000$2,800
Use the table below to get a quick idea of your suggested maximum house payment based on your income. Don't forget to consider PMI, HOA's and any other monthly cost directly associated to the rent.

You asked How much house can I afford for 2000 a month? With an FHA 30 year loan, and an interest rate of 4.35%, and 3.% down, you could possibly afford a $400,000 home. See Details

 

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