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Methodology There’s a lot more to home affordability than the price a homebuyer agrees to pay the seller. To find the most affordable places to buy a home, SmartAsset took a holistic approach, considering closing costs, real estate taxes, homeowners insurance and mortgage rates in our analysis.
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Rules vary for how much house you should buy based on a your yearly income. Some lenders, for example, indicate that a home’s sale price should not exceed 2.5 times your annual salary.