Determine What You Can Afford
- 2016 29 Jun
First-Time Home Buying Finances Tip #2: Determine What You Can Afford
We recommend not paying more than 25 to 30 percent of your monthly household income on mortgage payments, taxes, and insurance premiums. If you can’t afford it now, you certainly won’t be able to afford it later—that is, unless you know ahead of time certain changes to your financial situation coming in the near future, like a promotion or inheritance.