how much house can i afford

When it comes to determining how much house you can afford, you need to consider your budget and understand your financial situation. It is important to be realistic when establishing a budget and consider your income, current debts, and overall lifestyle. It is also important to consider the cost of homeownership, such as insurance, taxes, and maintenance.

A good rule of thumb to follow is the 28/36 rule, which states that no more than 28% of your pre-tax income should go towards your housing costs. Additionally, your total debt should not exceed more than 36% of your pre-tax income. When considering the cost of homeownership, this rule will help you determine how much house you can afford.

When you have considered your budget and the 28/36 rule, the next step is to consider a down payment. A down payment is the amount of money you can put towards the purchase of a home. Generally speaking, the larger your down payment the more house you can afford. A 20% down payment is considered ideal, however, if you cannot make a 20% down payment, there are other options available. Be sure to research all available options so that you can make an informed decision.