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.
Look at the Mortgage-to-Salary Ratio. A generally accepted rule of thumb is that your mortgage shouldnât be more than three times your annual income. So if you make $165,000 in household income, a $500,000 house is the very most you should get. (Some people recommend that it shouldnât be more than 2.5 times your annual income, which yields a house price of about $412,000.) Of course, there is some nuance in here.