What is the affordable monthly mortgage payment if your yearly gross income is $48,000 and monthly payments on an auto loan are $320?

Question

Quizplus · Accepted Answer

A common rule for calculating how much mortgage you can afford is the 28/36 rule, which suggests that you should not spend more than 28% of your gross monthly income on housing expenses and not more than 36% on total debt, including housing and other debts like car loans. With a yearly gross income of $48,000, the monthly income is $4,000. Applying the 28% rule, $4,000 * 0.28 = $1,120, which rounds to $1,200 for simplicity. This does not directly account for the auto loan, but it fits within the general guideline for housing affordability.

What Is the Affordable Monthly Mortgage Payment If Your Yearly