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What kind of house can you afford?


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January 23, 2008 4:04AM

The old rule of thumb, that has worked well for me, has been a mortgage of no more than 2.5 times your income. With house prices as they are, that requires quite a large down payment. However, if you manage to do that, you will not ever be upside down on the home loan, you may get more favorable financing and the affordability of your payments will be decent.