# What Is The 28 36 Rule?

The 28/36 rule states that a household should spend a maximum of 28% of its gross monthly income on total housing expenses; it should spend no more than 36% on total debt service, including housing and other debt such as car loans.

## How do you find the 28 36 rule?

The 28/36 rule states that a household should spend no more than 28% of its gross monthly income on total housing expenses, and no more than 36% on all debt, including housing-related expenses and other recurring debt service.

## How do I calculate 28 of my income?

Here’s an easy formula: Multiply your monthly income by 28, then divide that by 100. The answer is 28% of your monthly income. The median income in the U.S. is \$55,775. If this were your income, you’d make about \$4,648 per month; 28% of that monthly income comes out to about \$1,301.

28 percent

## What is a good rule of thumb for a mortgage payment?

Mortgage Rule of Thumb. Lenders typically want no more than 28% of your gross (i.e., before tax) monthly income to go toward your housing expenses, including your mortgage payment, property taxes, and insurance. Once you add in monthly payments on other debt, the total shouldn’t exceed 36% of your gross income.

## How much money do you have to make to afford a \$300 000 house?

To afford a house that costs \$300,000 with a down payment of \$60,000, you’d need to earn \$52,116 per year before tax. The monthly mortgage payment would be \$1,216. Salary needed for 300,000 dollar mortgage.

## How much do you have to make for a house loan?

Most lenders require that you’ll spend less than 28% of your pretax income on housing and 36% on total debt payments. If you spend 25% of your income on housing and 40% on total debt payments, they’ll consider the higher number and the amount you can qualify for will be lower as a result.