SCENARIO 2: You has just got a nice job offer in DeKalb, IL with a monthly gross salary of$5,000 per month/$60,000 per year. You want to know how much more you need to earn everyyear if you want to purchase your dream home (you name it!) in DeKalb, IL.First figure out the price of your dream home, let's say it's X. Assume that you do 20% as downpayment (recommended), then 80% of X is the mortgage loan you have to borrow. That is your PV.You can choose either 30 years term or 15 years term, the rate will be slightly different.

Let's put allthese numbers in the finance calculator to figure out the PMT (the monthly payment you have tocome up for PITI for this house).https://www.calculator.net/mortgage-calculator.html

Based on the 20% rule for house payment, you should have at least PMT/20% = Y as your monthlygross income! So your yearly gross income should be Yx12How much more do you need to earn per year? Yx12- $60,00