What Percentage of Your Paycheck Should Go to Your Mortgage?

Owning a home is a dream for many, but navigating the financial side of homeownership can feel overwhelming. One of the most common questions homebuyers ask is: How much of my income should go toward my mortgage? Let’s break it down so you can budget with confidence! 👇

The 28% Rule:

Experts often recommend following the 28% rule — meaning your monthly mortgage payment (including taxes and insurance) should not exceed 28% of your gross monthly income.

🔸 Example: If you earn $6,000 per month, your mortgage payment should ideally be $1,680 or less.

This guideline helps ensure that your housing costs remain manageable and don't eat up too much of your income.

The 36% Rule (Debt-to-Income Ratio):

In addition to the 28% rule, lenders also look at your debt-to-income ratio (DTI). The general recommendation is that your total debt payments (including credit cards, car loans, student loans, etc.) should stay under 36% of your gross monthly income.

By staying within this range, you’ll be better positioned to handle your mortgage along with your other financial responsibilities.

Why Sticking to These Limits Matters:

Keeping your housing costs and debt under control provides several long-term benefits:

✔️ Financial Flexibility: You’ll have enough left over for groceries, utilities, and other essentials. ✔️ Room for Savings & Emergencies: Life happens — having extra room in your budget can help you build an emergency fund or save for future goals. ✔️ Avoiding “House Poor” Status: Stretching your budget too thin for a dream home can lead to financial stress. Sticking to these guidelines helps you enjoy your home without constant worry.

Pro Tip: Personalize Your Plan 🔑

While these rules are great starting points, everyone’s financial situation is unique. It’s a good idea to talk to a lender or financial advisor who can help you create a plan tailored to your income, expenses, and long-term goals.

Thinking about buying a home or curious about your budget? Let’s chat! 📩 Whether you're a first-time buyer or planning your next move, I’m here to help you navigate the process and find a home that fits both your lifestyle and your budget.

Ready to take the next step? Let’s make your homeownership dreams a reality! ✨