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.
Of that $5,833, you can pay $1,633 towards your total mortgage payment. If the real estate taxes in the area you want to live equal $5,000 per year, this equals $416 per month. Figure in your homeownerâs insurance at $900 per year, so $75 per month and you have $1,142 left for principal, interest, and mortgage insurance.