Housing Affordability Calculator: Financial Calculators

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Housing Affordability: Calculating how much home you can afford!

Housing Affordability

How costly a house can I afford is a question that is on most people's minds. Each situation is unique and hence there is no universal answer but there are some general rules of thumb that you can use. However, please note that these are just rules of thumb and no more, no less. Please consult a professional advisor for specific advice.

What is your monthly take home pay (you and your spouse)?	$
What is your gross annual income from all sources?	$
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Results
Many mortgage and financial planning experts think that a borrower should not take on a mortgage payment of that exceeds 35% of take home pay. In your case, using this rule of thumb, the monthly mortgage payments should not exceed:	$
Another rule of thumb is the that the value of the home being purchased should not exceed 2 ½ times the annual income.(However, this may be difficult to apply in metro cities.) According to this rule, the cost of your proposed home should not exceed:	$
Similar to the first rule of thumb that experts use which states that the mortgage payment, property taxes and home related insurance premiums should not exceed 25% of the gross income. According to that rule, your payments for such expenses should not exceed:	$ a year

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