Patrick.net

if you have been working 10 years, and saved $100k. that's $10k/year saved. assume rent is $10k/year.

doesn't that mean with a 30 year fixed mortgage, the most you could realistically pay towards the mortgage is $600k (30 years times $20k/year)? about half of that is interest, so very roughly the initial house price would be $300k + down payment (equals 20% of price)=$374k.

the low home price is be defined by rent only. mortgage=$10k/year over 30 year = $300k/30year. take 50% for interest. so low home price = $150k + down payment(equals 20% of home price) = $187k

as a rough estimate, every $10k/year of mortgage is equal to purchasing $187k of house.
$10k/year = $190k
$20k/year = $375k
$30k/year = $560k
$40k/year = $750k
$50k/year = $935k
$60k/year = $1,120k
* assume 20% of the total purchase price used for down payment.
* rounded to nearest $5k

gross paycheck assuming annual mortgage amount is equal to total net income
$10k/year = $15k/year
$20k/year = $30k/year
$30k/year = $50k/year
$40k/year = $65k/year
$50k/year = $85k/year
$60k/year = $100k/year
* rounded to nearest $5k
http://www.dinkytown.net/java/PayrollGross.html

as an example, you would need a salary paying $100k/year and all of that income would be needed to pay the mortgage on a $1,120k house. taxes, interest deductions, and other factors haven't been included.

isn't it relatively simple to say i can save $x/year over 30 years, which means i can afford this much house?