How Much House Can I Afford? Quick Guide To Home Affordability
Posted by Paul Burrowes on
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
- Quick Rule Of Thumb: Multiply Your Annual Salary By 2.5 or 3
- The More…
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