ANSWERS: 3
  • If you are getting a mortgage the rule of thumb is that the monthly payment should not exceed a quarter of your monthly take home pay. (So basically your monthly payment should not exceed one week's takehome pay)
  • I have seen a better aproach to the subject at http://econlog.econlib.org/archives/2004/03/house_prices.html
  • I'm renting and seriously cannot find anything priced at a quarter of my income or less. I know mortgages for larger homes are about the same than what I pay. I'm saving for a near future down payment.

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