How Much Home You Can ACTUALLY Afford (By Salary)

Summary by Krater

This video breaks down the financial realities of renting versus buying a home under current market conditions and interest rates, evaluating common rules of thumb like the 30% rule for rent and the 28% and 30/30/3 rules for mortgages.

From the video

Answers: How much money do you need to make to rent or buy a house?

• renting vs buying a home
• mortgage affordability rules
• renting affordability rules
• debt-to-income ratio for mortgages
• hidden costs of homeownership

What it concludes

• Renting is cheaper than buying in almost all major US metropolitan areas, with the typical home costing an estimated 25% more per month to own than rent nationwide.
• The 30303 rule requires spending no more than 30% of gross income on housing, having at least 30% of the home value saved in cash or semi-liquid assets, and not buying a house that costs more than 3 times your annual income.
• Under a 45% debt-to-income ratio guideline, any outstanding loans you have will reduce the maximum mortgage amount you qualify for.