House Price Range For Income

Determining your price range why realty this may help.

House price range for income. A 20 down payment is standard if you can afford it. A range of factors must be weighed before any home buying decision can be made including the amount of home you can afford. Quickly find the maximum home price within your price range. For example a combined monthly mortgage payment of 1 200 divided by gross monthly income of 4 500 equals a housing ratio of 27.

You can afford a house that costs up to 2 times your annual gross income that is your income before taxes medicare and social security are deducted. To calculate how much house can i afford a good rule of thumb is using the 28 36 rule which states that you shouldn t spend more than 28 of your gross monthly income on home related. The recommended ratio of a house price to your yearly income. If you are buying a house with someone else you can also consider your co purchaser s annual gross income to help you decide just.

X how much house can i afford calculation example. For an example calculation lets use a 60 000 annual income 250 in monthly debt payments 20 000 to use as a down payment property taxes of 1 25 of the property price you can qualify for and annual homeowner s insurance premiums of about 0 5 of the value of the home. 1 400 on house related expenses 5 000 x 28 1 800 on total debt 5 000 x 36 how much of a down payment do you need for a house. To arrive at an affordable home price we followed the guidelines of most lenders.

In general that means your total debt payments should be no more than 36 of your gross income. Let s say you and your spouse have a combined monthly income of 5 000.