Rule of thumb for mortgage payments

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Housing is likely your biggest monthly expense and, if you live in a city like San Francisco or New York City, it may eat up a good chunk, or even the majority, of your paycheck.Most mortgage lenders determine how much house you can afford by using the 28 percent rule.Enter to Win Cash for Christmas!For financial advice, giving rules of thumb, in my opinion is not the best way to operate as they are very basic and no two people are the same, so what is right for me may not be for you.That's far more than most of us could afford to pay in cash, and why most of us take out a mortgage.Generally speaking, most prospective homeowners can afford to finance a property that costs between two and two and a half times their gross income.

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When browsing real estate listings for a new home, the first step is to figure out how much mortgage you can afford.

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By Marc Shoffman for Thisismoney.We respect your privacy.At a recent entrepreneurial conference that I was invited to sit in on a guest panel, our panel was asked a really good question by a young female college student regarding mortgage payments.

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