Our editorial team is independent and objective. To help support our review work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Bankiful site. This site does not include all companies or products available within the market.

We also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content.

While we work hard to provide accurate and up to date information that we think you will find relevant, Bankiful does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for.

How much house can I afford?

Use the 28/36 rule to calculate how much house you can afford this involves home-related costs and total debts.

Ever wonder how much house you can afford? Let's break it down in sixty seconds.

How we calculate how much house you can afford

Your housing expenses should not exceed twenty-eight percent of your monthly income. That includes your mortgage, property taxes, and insurance. But wait! There's more.

Your total debts, including your new mortgage, car loans, student loans, and credit cards, should not exceed thirty-six percent of your income.

Follow the 28/36 debt-to-income rule

Example: Let’s say you and your spouse have a combined monthly income of $7,000. Applying the 28/36 rule, you wouldn’t want to spend more than:

  • $1,960 on house related expenses ($7,000 x .28)
  • $2,520 on total debt ($7,000 x .36)

Now, take into account all sources of income, yours, your spouse's, and any others. Deduct your fixed expenses and voila!

You've got your available funds for a mortgage.

Create your list of monthly expenses

Remember, this approach ensures you have financial stability for other expenses and savings too. So, don't just dream about your perfect home, make it a reality with this simple trick. Keep these percentages in mind, and you'll be one step closer to unlocking the door to your dream house.

Learn how to earn more & save smarter

Get free tutorials, expert tips, news, and resources delivered to your inbox weekly.

You have been successfully Subscribed! Ops! Something went wrong, please try again.

Best online savings rates

The national savings rate is 0.47% APY. This online bank pays way more.

CIT Bank

Platinum Savings
5.05% APY
Minimum $5,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured


5.21% APY
Minimum $1,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

Quontic Bank

4.50% APY
Minimum $100 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured
Disclaimer: Our goal is to provide the most relevant and current information. However, the information is for informational purposes only and is not intended to be personal financial advice.

© 2024 Bankiful.com All rights reserved.