I’m considering buying my first home. How do I figure out how much I can afford?
An affordable housing payment that is more than 28% of household income is usually not recommended. This number includes the mortgage payment (principal and interest only), utilities (except telephone), taxes and insurance. Total debt payment, including non-housing debt, above 35% is usually not recommended.
For more information on determining how much house you can afford, see the following links:
Lisa Hamilton-Hill, Architectural Studies, College of Human Environmental Sciences, University of Missouri Extension
Last update: Monday, May 18, 2009