How much house can I afford?
January 4, 2012 3:48 PM Subscribe
It is often said (by presumably reputable sources, such as FHA
), that you can afford a house payment that equals 28% - 35% of your pre-tax salary. This seems like an astonishing large amount of money to me -- it's almost 2x what I pay now in rent. Even considering the tax deduction, how can this be right, in this day and age of low housing appreciation rates?
posted by yarly to work & money (35 answers total) 4 users marked this as a favorite