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.
When it comes to the down payment, more is always better. If you're looking to avoid private mortgage insurance, you should consider putting at least 20% down. Depending on your price range, your ideal home may require anywhere from a $20,000â$40,000+ down payment (assuming you want to put down 20%).