How Much Can You Afford on a House?

Week of June 29, 2009

The rule of thumb is that a military family can comfortably afford a home that is up to three times their average annual household income. Think of your annual income as a pie. It has four slices: taxes, savings, needs, and wants. For most people, taxes chew up about 25 percent of their gross income. In an ideal world you should save 15 percent of your gross income. So that leaves you with 60 percent of your gross (or pre-tax) income for everything else. Your housing costs, your transportation costs, your health care, your child care, your food, your entertainment, etc. See the full article on Military.com.

Visit the Military.com PCS/Home Buying Guide. It will help you sort through the moving process and ease your PCS. This guide offers moving checklists, articles about finding homes in the right neighborhood, tips for selling your home fast, and much more.