House Payment (insurance, credit card, lenders, FHA) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

midcal · 06-09-2008, 11:13 AM

HI. Does anyone know of a rule of thumb for house payment affordability? My wife and I bring home 5200 a month. We have no credit card bills or car payments. Thank you.

BGS99 · 06-09-2008, 11:31 AM

28/36 is a good starting point.

Where your mortgage payment doesnt exceed 28% of your gross monthly income.
And your mortgage payment combined with your other debts dont exceed 36% of your gross monthly income.

I believe FHA may be a little different.
Lenders may use their own formulas, but that's a good starting point

TwiloMike · 06-09-2008, 11:32 AM

Multiply your gross income by .3 and you should have an approximate totality of housing costs that you may be comfortable carrying. Depending on your situation you may be able to afford more: that's up to your comfort level and your lifestyle math. Keep in mind that "house payment" includes principal, interest, taxes, and insurance. If you have home owners' association dues then those count also.