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Rainy
Lv 5
Rainy asked in Entertainment & MusicPolls & Surveys · 1 decade ago

What calculation or formula do you use to find the price of home you can afford ?

I'm curious to know why a family that only makes 50K per year thinks they might be able to afford a 280K home

Update:

a realitor told them they could afford 280K to 300K, Personally I think 125K would be tight for them.

Update 2:

I called a realitor and told her me and my hubby make around 55K a year gross she told me our budget 250K with nothing down ??? no wonder there are so many foreclosures out there

4 Answers

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  • (:P)
    Lv 6
    1 decade ago
    Favorite Answer

    They can't afford it. The might be able to afford a $125k home if they stick to a budget.

    Edit: About 2.5 times your salary is the general rule.

  • baculite1
    1 decade ago

    It used to be 1 week's pay, but now you can use 2 week's pay (take home) and that's how much mortgage you can afford. It will still be tight but that's a good rule of thumb.

    Source(s): Owned three homes.
  • kim t
    Lv 7
    1 decade ago

    Talk to a realtor, just to get a feel to what you can afford, do not over stretch your finances for the house payment.

  • oh_jo123
    Lv 7
    1 decade ago

    ok 280,000 about 28,000 down on the house to start off at and then probably 2,800 dollar payments a month for abut 30 years

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