How Much Can You Afford To Pay? Your monthly payments, including interest, principal, property taxes and insurance, generally should not amount to more than 28% of your monthly income. Assuming that principal and interest equal 25% of household income and taxes; and insurance equal 3%. Here is how much people in various income categories could afford to pay for a home if they use a 30-year mortgage and make a 10% or 20% down payment.
10% Down Payment
20% Down Payment
|
© 2000-2009 PhoenixREIC. All Rights Reserved.