Chapter 03 — Money & Finance
How much house can I actually afford?
A common rule: total housing costs (mortgage, taxes, insurance, HOA) under 28% of gross monthly income, and total debt under 36%. With a 20% down payment, the price you can carry is roughly 3–4× your annual income at current rates. Stress-test with rates 1–2% higher than today.
Follow-up questions
Do I really need 20% down?
No, but below 20% you'll pay PMI (mortgage insurance) until you reach 20% equity. FHA loans go as low as 3.5%, VA loans 0% if you qualify.
What credit score do I need?
720+ gets the best rates. 620 is roughly the floor for conventional loans. Every 20-point bump can knock your rate down meaningfully.
Is renting throwing money away?
No — you're buying flexibility and avoiding maintenance, property tax, and interest costs. Buying wins long-term only if you stay 5+ years and the market cooperates.
People also search
- mortgage calculator
- first time home buyer
- closing costs explained
Related across The Asked
Money & Finance
How much of my income should I save?
Money & Finance
How big should my emergency fund be?
Money & Finance
How do I start investing?
Money & Finance
How do I invest in stocks for beginners?
Money & Finance
How does a credit score actually work?
Money & Finance
How do I improve my credit score fast?