How much house can you afford?

Nov 04

adminPersonal Finance mortgage, payment, Rule of Thumb 1 Comment

A rule of thumb for how much house you can afford is that you should try and keep the purchase price of the house less than 2.5 times your GROSS annual income. (Good luck in San Francisco, New York, or basically anywhere you’d want to live

One Comment (+add yours?)

Andrew
Jul 15, 2008 @ 13:51:32

If you don’t own a car, you can put the money into the housing costs. This allows you to double the value.

I.E. Someone living in NYC, in subway range, (or who can bike to work in San Franciisco) you can afford a home that is upto 5 times their GROSS income.

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