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.
1. Prepare a detailed budget. The oldest rule of thumb says you can typically afford a home priced two to three times your gross income. So, if you earn $100,000, you can typically afford a home between $200,000 and $300,000. But thatâs not the best method because it doesnât take into account your monthly expenses and debts. Those costs greatly influence how much you can afford. Letâs say you earn $100,000 a year but have $1,000 in monthly payments for student debt, car loans, and credit card minimum payments. You donât have as much money to pay your mortgage as someone earning the same income with no debts.