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.
Here's the super-quick rule of thumb: Most people can afford a home that costs up to three times their annual household income. If you have little to no debt and can put 20% down you can probably buy a house worth close to four times your annual income. Example: If you and your spouse together make $60,000 a year (which was the median household income. If you're single and make $35,000 a year, then you can probably afford only about a $105,000 home. But in most parts of the country, you can't buy homes that cheap.