We agree with the contractor that the damages resulting from increased interest rates are consequential damages. Increases in interest rates are not caused by delays in completion of construction contracts.
So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment. Hereâs an example: If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.
What monthly payment can you afford? Most lenders recommend that borrowers spend no more than 28 percent of their monthly income on a mortgage payment. For instance, if you make $8,000 a month and owe $500 in monthly debt payments, you could get a 30-year mortgage of up to $380,000 with 5 percent interest. Your monthly payments, representing 28 percent of your income, would be $2,040.