by 
The Curious Bag
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<h4 class="dechead">On One Hand: Consider Your Income
Conventional wisdom suggests no more than 28 percent of your family's income should go to your monthly housing payment. Remember that on top of the mortgage itself, you'll have to pay homeowner's insurance and real estate taxes. Of course, maintenance and utilities will also increase your housing costs.
On the Other: Add Up Existing Debt
Factor in your existing debts when you estimate an affordable monthly mortgage payment. Add up those student loan, credit card, and car loan payments as well as any alimony or child support obligations. Including your mortgage debt, ideally you should have no more than a 36 percent debt-to-income ratio.
Bottom Line
Use the figures quoted above to give you a rough idea of what a realistic mortgage would be, but make sure the number you arrive at reflects your personal situation. And keep in mind it is better to purchase a modest home than to end up with a mortgage you can't afford.
Source:
Resource:
CNN's affordable home calculator tool
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