How do I know how much home I can afford?⁣
• Most experts recommend using the 28/36 rule which means you shouldn’t spend more than 28% of your gross monthly income on housing and 36% on total debt (including your mortgage, credit cards, and other loans like auto and student loans).⁣
• For example, if your salary is $75,000 per year, your gross monthly income is $6,250 ($75,000 divided by 12). Your total housing costs (principal, interest, taxes, and insurance) shouldn’t exceed $1,750 per month (28% of $6,250). ⁣
• Keep in mind the 28/36 rule is just a general guideline. Adjust the percentages to your own comfort level and financial goals. ⁣
Playing around with your budget and ready to see some homes? Send me a message and let’s get your home search started!⁣

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.