How Much House Can I Afford? | Money Minutes

Описание: Welcome to Erin Talks Money - Money Minutes. The Money Minutes series is where I tackle some of your biggest money questions in just a few minutes. Yes, we are all hard pressed for time these days, so let’s break it down to the bare necessities in this video. How much of a home can you afford?

Well the biggest factor at play here is your income. The general, conservative rule that I like to go by is this:

2.5 x your annual income = the house you can afford

Now I love to be conservative with home prices because that means you are sure to have enough money left over to pay off debt, put towards savings (to put into your Vanguard Roth IRA), to spend pretty much however you wish.

The last thing you want it to be house poor - that’s why I use conservative numbers!

If you have a two income household, then of course you get to use both incomes in your calculation.

So, with all of that said: How much of a home can you afford?


Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.


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I have a FULL length video on how much of a home you can afford, check it out here:    • How Much House Can I Afford?  

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