Name _________________________________
Period ______
Housing Affordability
How many wage earners are contributing to the total yearly income? _____
The incomes are:
You
Your spouse
___________________
___________________
(Add the incomes together)
For a total gross annual income of ____________________.
One way to determine how much house you can afford is to multiple the
gross annual income by 4. This is a rough estimate of the house you can
afford. This rough estimate is called a “ball park figure”. If you were
actually buying a house other factors would be considered.
_____________________ X 4 = _____________________
Gross annual income
The amount of money you can afford for a house is ___________________.
Another rule of thumb is that the monthly home expense should not exceed
28% of the gross monthly income. Example: If the gross yearly income is
$31,000, then the gross monthly income is $2,600, and the monthly home
expense should not exceed $750.
_____________ divide by 12 = ______________ X .28 = ___________
Gross annual income
Gross monthly income
Monthly housing cost