Your total monthly housing payment—including principal, interest, taxes, and insurance ( PITI )—should be 28% or less of your gross monthly income (before taxes).
Your total monthly debt payments, including the new mortgage plus car loans, student loans, and credit cards, should not exceed 36% of your gross monthly income. 2. The 30/30/3 Rule buying first home how much can i afford
Many financial experts recommend this stricter safety net for long-term stability. The 30/30/3 Rule Many financial experts recommend this
Buying your first home involves balancing what a lender will let you borrow with what your personal budget can actually sustain. To find your comfort zone, you can use several industry rules of thumb and financial metrics. 1. The 28/36 Rule Your total monthly housing payment—including principal
This is the most common industry standard used by lenders to assess risk.
Affordability Calculator - How Much House Can I Afford? - Zillow