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.
Note, though, that this method of determining how much home you can afford is based on maxing out your debt-to-income ratio, which may not be advisable. The DTI-based formula won't show what you should pay for a home -- it will show you what you could pay for a home.herefore, consider the other approach to the How much home can I afford question. Determine the maximum monthly payment you'd like to make each month, and then, using today's mortgage rates, work that figure backward to find your maximum mortgage loan size.