So, everyone is asking “How Much House Can I Afford?” because everyone wants to have their own house. Having a house of your own means you will be able to provide a place of living for your family and children. When you decide to buy a house, you will need to make calculation based on your income and your debts to find out how much down payment that you can offer to the lender companies. Well, since buying a house in not cheap, but it is extremely expensive, you need to find the lenders that will give you mortgage loans to help you buy your own house.
If you are really serious in answering a question “How Much House Can I Afford?” and you are serious with your plan in buying a house, it is recommended that you use one of the free mortgage calculators to estimate the maximum mortgage you can afford to ask for in the banks. These calculations are based on two simple rules that most of the lenders tend to use to decide how much of a mortgage a person can afford to pay back. The first rule is that your monthly costs for keeping a house should not exceed 32% of your gross monthly household income, meaning yourself and your wife. Secondly, your entire monthly debt sum should not be any more than 40% of your gross monthly income. This includes housing costs, all other debts such as car payments, personal loans, and credit card payments your family pays every month.
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