To calculate ‘how much house can I afford,’ a good rule of thumb is using the 28/36 rule. This rule states that you shouldn’t spend more than 28% of your gross, or pre-tax, monthly income on home-related costs. You also shouldn’t spend more than 36% on total debts, including your mortgage, credit cards and other loans, like auto and student loans.
How much house can I get for $500 a month?
How much mortgage can I get for $500 a month?
With a total monthly payment of $500 every month for a loan term of 20 years and an interest rate of 4%, you can get a mortgage worth $72,55
Of course, this value might vary slightly, depending on the percentages of property tax and home insurance.
What house can I afford with 10K a month?
A rule of thumb is that your housing budget should be no more than 1/3 of your income or approximately 35%. So if you are making 10K per month, 5K is a reasonable housing budget.
How much house can I buy for $900 a month?
How much mortgage can you get for $900 a month?
To calculate home price based on $900 monthly payment, use this equation: $900/mo will pay for a $200,425 home loan.
Keep in mind that this does not include the cost of insurance, repairs, taxes, PMI, HSA dues, or other costs.
What are the 5 income classes?
2 million Americans are in poverty, according to the 2016 U.S. Census Bureau’s American Community Survey. Another 5 million are considered “lower class,” meaning they live above the poverty line but make less than two-thirds of the median income.
The “middle class” is a bit of a moving target, but the Pew Research Center defines it as adults whose annual household income is two-thirds to double the national median. That would give us a range of about $41,000 to $122,000 for a three-person household.
Those who make more than double the median income are considered “upper class.” Pew says that’s about 20% of U.S. households, or 61 million people.
I’m Brendan Rivers, and I love all things real estate. I live in sunny Los Angeles and work as a real estate expert. I enjoy helping people find their dream home, and I love everything about the process of buying and selling property.
I’m originally from Boston, and I love spending time with my family and friends there. When I’m not working or hanging out with loved ones, you can usually find me at the beach or exploring new parts of LA.