You want to buy a house and wonder what you can afford. Banks look at collateral, creditworthiness and capacity (ability to pay) when making loans. Assume you have sufficient down payment and credit score. Your bank has a requirement of 28% housing expense ratio and your gross annual income is $64,000.

Based on those assumptions, how much can you afford to pay in total housing costs each month?

Answer rating: 100% (QA)

To determine the total housing costs you can afford each month ... View the full answer