If you are thinking about buying a house (or even renting), this is a great calculator that can help you figure out about how much you can afford to spend on monthly payments. Obviously, before you buy a house, you need to get pre-approved for a mortgage, but sometimes you can pre-approved for a mortgage that you can't really afford. You need to be honest with yourself and decide what number works for you!!!! Being house poor is NO fun!
According to this site, it's a general rule not to spend more than 28% of your gross income on a mortgage. So take your gross income (a full year's salary), multiply it by .28, and then divide by 12. This is the most you should aim to spend because you have to factor in other monthly expenses that come with owning a home (repairs, upgrades, etc.)
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