03/29/2023
How much home can you afford?
One common rule of thumb is the 28/36 rule. This means that your total monthly housing expenses, including mortgage payments, property taxes, and homeowners insurance, should not exceed 28% of your gross monthly income. Additionally, your total debt payments, including credit cards, car loans, and student loans, should not exceed 36% of your gross monthly income.
Another factor to consider is your down payment. Generally, a larger down payment will reduce your monthly mortgage payments and allow you to afford a more expensive home.