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.
If the down payment is five percent, the interest rate is 7 percent, and the maximum mortgage payment the buyer can make is $1,060, then the buyer can afford a $167,712 house. With a 20-percent down payment, however, the buyer can shop for a $199,158 house.