Question 1

How much house can I afford?

Accepted Answer

A common guideline is the 28/36 rule: spend no more than 28% of your gross monthly income on housing (mortgage, property tax, insurance, HOA), and no more than 36% on total debt including that housing payment plus car loans, student loans, and credit cards. This calculator finds the home price whose monthly payment fits the tighter of those two limits, given your down payment and mortgage rate.

Question 2

What is the 28/36 rule?

Accepted Answer

The 28/36 rule is a lending guideline. The 28% 'front-end' ratio caps your housing payment at 28% of gross monthly income. The 36% 'back-end' ratio caps all monthly debt payments — housing plus other debts — at 36%. Lenders may allow higher ratios, but staying within 28/36 keeps payments manageable. Your affordable price is set by whichever limit binds first.

Home Affordability Calculator