Online House Hunting

If you make around 160 k before taxes, what is the highest value house that you can buy?

What price range do people usually buy houses at? 3-4 times the income?

Public Comments

1. About 2.5 times is the general guideline. More than 3.0 times is a really bad idea. So a person with $160K income could have a house in the $325 to $350K range.
2. Maximum 3 times yearly gross income. Be prepared to have no more than 36% total debt to income ratio and a maximum 28% mortgage to income ratio. It means... get rid of any excess credit card debt, pay off that car and drive it after it is paid off and start saving up at least 20% down payment plus another 3% for closing fees, etc. Or... look for a cheaper house.... that you could easily afford. Nobody said that you had to max. out your limit.
3. To live comfortable and not end up in the crisis that most are in dealing with a FORECLOSURE. I would only purchase something that doubles no more then your current income $300-320k max. You have to remember your have to pay for utilities, insurance, taxes, car payments, medical..etc This will give you a good leverage incase you lose your job to be able to still live comfortable and save for your future. Don't forget to look into foreclosed homes your'll be surprized what you can get for the money some need very little to nothing to fix up and some are even New Construction and priced below than FSBO!
4. The question you should ask yourself is, how much am I comfortable with paying for housing every month.