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According to 28/36 rule (a household should spend a max of 28% of its gross monthly income on total housing expenses and no more than 36% on total debt service), you (most likely) can comfortably afford a total monthly payment of $486 (assuming a $500 monthly debt) and an excellent credit score. That means you can afford a $68,400 home. if you are really aggressive , all your expenses are housing expenses (spending $0 on other stuff), you can afford a $133,000 home. \n\nThese estimates are based on a 30-year fixed conforming loan and 4.25 interest rate. \n\n
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