|"How much home can I afford?" is a question most home buyers ask.
While there are varying thoughts on this a common rule of thumb is that your monthly housing expenses should not total to more than 33% of your gross (i.e. before taxes) income. That includes your mortgage payment, property taxes, and home owners insurance. So take a third of your current income and use that as the maximum amount that you'll be able to afford.
"How much will my monthy payment be if I buy that house?" is the next frequently asked question by a prospective home buyer.