A House Can I Buy: How Expensive Of

Your monthly housing costs—including principal, interest, taxes, and insurance (PITI)—should not exceed 28% of your gross monthly income.

Some experts stretch this to 4x or 5x income if you have zero debt and a large down payment. 2. The 28/36 Rule (Standard Lender Guideline) how expensive of a house can i buy

Lenders use these percentages to determine your ratio. Your monthly housing costs—including principal

Developed to ensure you aren't "house poor," this rule adds a savings requirement: your target home price is $300

If you earn $100,000, your target home price is $300,000.

Spend no more than 30% of your gross monthly income on your mortgage payment.

Have 30% of the home price saved (20% for down payment, 10% for closing costs and an emergency buffer).