RE expert wrote:
Swaglord_the_real_one_1_one_1 wrote:
Real Estate Gurus.
What's the most reasonable ratio or rule of thumb with a conservative house-price-to-income ?
Let's say you make $140k. What's a reasonable range of purchasing power?
The old rule was 3 times the yearly household income is the maximum amount you should get a loan for. So with $140k, that would be $420k max.
This is a good rule of thumb. You should also have enough cash to put down 20% of the value of the home and still have enough savings on hand to withstand 6 months of expenses.