# How Much House Can You Afford?

### Contents

The thumb tells us that with a gross income of \$50,000, you could afford a house valued at \$150,000 or less. Depending on local home values and real estate tax rates, miscellaneous expenses and your down payment amount, \$958 a month may be plenty or it could be nowhere near enough.

Find out how much house you can afford with NerdWallet’s Home Affordability Calculator. Just like a mortgage lender, we factor in your household income, down payment, monthly debts, and monthly.

The past two years have demonstrated in dramatic fashion what can happen to people who overreach to buy the home they want. The lesson: Qualifying for the mortgage does not necessarily mean you can.

How much house can I afford is one of the most common question first time homeowners have. Consider these 4 factors to see how much.

Intro: Potential homebuyers need to understand that the cost of a home is about more than just the monthly mortgage payments. So, whether you’re a first-time homebuyer or a seasoned pro looking to.

See how much home you can afford. If you’re single and make \$35,000 a year, then you can probably afford only about a \$105,000 home. But you almost certainly can’t buy a home that cheap. Single people have a tough time buying homes unless they make an above-average salary.

As you determine how much house you can afford, remember to factor in down payments, especially if you’re trying to afford the 20% to avoid PMI. Note that you might not have to put down anything at all if you tap into certain government loans.

A tool to calculate how much house you can afford. You can get an estimate for a mortgage amount to see if it will fit comfortably within your budget.

How did research maniacs calculate how much house you can afford if you make \$40,000? Research Maniacs checked with different financial institutions and found that most mortgage lenders do not allow more than 36 percent of a gross income of \$40,000 to cover the total cost of debt payment(s), insurance, and property tax.

Getting Your First Mortgage If you’ve saved up a deposit of at least 5%, your credit score is in decent shape, and you don’t have excessive outgoings, you should be able to get a first-time buyer mortgage and buy your first.Buy Your First Home

· To help you figure out what price range you should be considering, personal finance site NerdWallet created a chart that details how much house you can afford.

Recommended Mortgage Amount Based On Income Learn how to decide on the amount of mortgage to obtain.. To calculate your maximum monthly debt based on this ratio, multiply your gross income by 0.36 and divide by 12.. and that you.