One rule of thumb says that most homeowners can afford a property that’s between 2 and 2 ½ times their annual gross income.
Some experts take the position that you should spend no more than 28 percent of your gross income on your mortgage payment, including principal, interest, taxes and insurance.
What is a reasonable house payment?
Monthly housing costs, which include mortgage payments, insurance, property taxes and condo or association fees, shouldn’t exceed 28% of your monthly gross income. Monthly debt payments, including credit card bills and student loans, shouldn’t exceed 36% of your gross income.
How much mortgage is $1000 a month?
A simple analysis … and interesting historical perspective.
These days — with conventional mortgage rates running about 4% — a $1,000 monthly Principle & Interest (P&I) payment gets you a 30-year loan of about $210,000. Assuming a 10% downpayment, that’s a $235,000 home.
How much of my monthly income should be mortgage?
Aim to keep your mortgage payment at or below 28 percent of your pretax monthly income. Aim to keep your total debt payments at or below 40 percent of your pretax monthly income. Note that 40 percent should be a maximum.
What is the average mortgage amount?
The average monthly mortgage payment in the United States is $1029*. This payment eats up 14.84% of the typical homeowners’ monthly income.