Calculate using real Paterson data. Median home price: $370,000. Property tax rate: 2.72%.
With the median household income of $38,460 in Paterson, NJ, following the 28% rule, you could afford a monthly payment of about $897.
The cost of living index in Paterson, NJ is 115 (national average = 100). A home at the median price of $370,000 would require roughly 9.6x the median income.
A conventional 20% down payment on the median Paterson, NJ home ($370,000) would be $74,000. FHA loans may require as little as 3.5% ($12,950).