Many people start their lives excited to buy their first home. They look to what the think they can afford and decide this will be their “Starter Home.” At first, they don’t mind living in a small house, but they are already making plans for bigger and better.
The Financial Crisis of 2008 was devastating to so many people and families. It affected not only homes but so many other financial avenues.
Experts say to stick with the 25% rule. 25% of your monthly take-home pay should constitute your house payment (whether its rent or mortgage).
I went to Realtor.com and used their home affordability calculator to see how much house we could afford. Now granted, our debt to income ratio is pretty low.