Determine how much mortgage debt you can afford based on your gross income.
Income & Debt
Monthly Gross Income: $5,000.00
Affordability Limits
Maximum Monthly Mortgage$1,400.00Limited by 28% housing rule
Front-End (28%)$1,400.00
Back-End (36%)$1,800.00
36% Rule Debt Breakdown
About this calculator
Overview
Determine how much mortgage debt you can afford based on your gross income.
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Pro Tips
What is the 28/36 rule?: It is a guide used by lenders to determine how much a household should spend on house-related expenses (28%) and total debt (36%) relative to gross income.
What counts as 'housing expenses'?: This includes principal, interest, taxes, and insurance (PITI).
What if I have high existing debt?: Lenders look at the 'Back-End Ratio' (36%). If your other debts are high, you may only qualify for a mortgage that keeps your total debt under 36%.
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Fun Facts
"The 28/36 rule is a standard used by many mortgage lenders to qualify borrowers for conforming loans."
"Lenders sometimes allow higher ratios (up to 43% or even 50% for FHA/VA loans) depending on credit score and down payment."
"Gross income is your income BEFORE taxes and deductions."
