We agree with the contractor that the damages resulting from increased interest rates are consequential damages. Increases in interest rates are not caused by delays in completion of construction contracts.
So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment. Hereâs an example: If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.
Lender's Determination. Mortgage lenders decide if you can afford a payment based on a stricter set of rules. Bank rules usually state that the borrower's total monthly payment should be no more than 28 percent (.28 in decimal form) of his gross income each month. The amount of a mortgage payment you can afford is equal to your salary times .28 divided by 12. By this guideline, if you make $35,000 per year (before taxes) you can afford a mortgage payment of $816.67 per month or less, using the formula (35,000 * .28)/12.