How many times salary can your mortgage be? Your maximum mortgage payment (rule of 28) The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out)
How do you calculate a 30 year mortgage?
Multiply 30 — the number of years of the loan — by the number of payments you make each year. For example, 30 X 12 = 360. You are making 360 payments over the course of the loan. Divide your mortgage interest rate by your total payments.
Can I get a 40 year mortgage?
Most 40–year mortgages are fixed-rate mortgages. They are built so that you pay off the loan over 40 years. … Most people who choose a 40–year mortgage do so because they want a low monthly payment. If you use a 15 or 30-year mortgage, your monthly payment will be higher.