Nearly everyone dreams of owning their own home. But can you afford the house and all of the expenses associated with it?

A home is the most expensive purchase most of us will ever make. In this chapter, we'll examine the pros and cons of homeownership and show you exactly how you should calculate how much you can afford to spend on a house.

What you can expect to learn from this chapter:

Should you buy or rent?   Owning your own home is a cornerstone of the American Dream, but there are pros and cons to it. We help you decide whether to buy or rent a home. How much house can you afford?   Once you've determined if you want to own a home, this section will show you how to calculate how much you can afford on your annual salary. Chapter 1 quiz   Take our quiz to find out if you learned how much house you can afford.