By Richard Stevens
Digital Content Manager
New Silver Lending, LLC

Calculating how much house you can afford is relatively straightforward if you just want a basic estimate based on your current salary. For instance, one quick rule thumb is to multiply your annual salary by 2.5 (or 3 if you have a good credit score). With that being said, you can also achieve a more accurate estimate, using some simple debt-to-income ratios.

The goal of this post is to outline the debt-to-income ratios that most US banks use when calculating your recommended mortgage amount. We will be using several user-friendly charts and examples to help solidify a few key points.

Table of Contents

  1. Quick Rule Of Thumb: Multiply Your Annual Salary By 2.5 or 3
  2. The More…

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