What is your chosen future profession? If you are not sure. it’s okay. Just pick a profession you are very interested in pursuing.
Where do you plan to live when you complete your education? If you are not sure. it’s okay. Just pick a location that you feel is likely.
Using your profession and location (if needed). search the internet for a projected starting salary. Tell us your projected salary. (Remember. if you do not
want to share this information. you may use fictitious information.)
A very basic guideline used by some mortgage lenders for your debt-to-incomeratio is 36% as the upper limit (although many other factors are considered).
Combining your projected income and any other income you will have (a spouse. alimony. retirement. etc.). use the 36% upper limit and let us know how
much you afford to spend on a home per month. In other words. what is 36% of your household projected yearly gross income. divided into months?
Use the value above and any other factors that may influence your final decision regarding the price of the home you would buy in the future. Tell us the price
range you would pick. For example. if you find that you could afford up to $250,000. but you know you want to save more money than the average person
and retire early. then you may choose a price range of $175,000 – $200,000. Or. if you know your parents will be giving you a large down payment (lucky
you!) then maybe you’ll go up to $300,000.
Go to zillow.com (or any other realty website) and use your location and price range to choose a home. Give us the link to view the home you have chosen.