The 28/36 rule is a guideline for determining how much house you can afford. It states that your total housing costs should not exceed 28% of your gross income, and your total debt should not exceed 36%. This rule helps ensure that you don't take on too much debt. To calculate how much home you can afford, multiply your gross income by 0.28 to find the maximum amount you should spend on housing, and multiply it by 0.36 to find the maximum amount you should spend on debt. The rule can be flexible based on your personal situation, but it's a good benchmark to follow.
Continue to full article