Your monthly mortgage payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income.
The "gold standard" to avoid Private Mortgage Insurance (PMI). 3. Credit Score & Interest Rates
Buying power is the maximum amount you can spend on a home based on your financial profile. It combines your available for a down payment with the maximum loan a lender will grant you. 🏗️ The 3 Pillars of Buying Power 1. The 28/36 Rule Lenders typically follow these debt-to-income (DTI) ratios:
Subtract roughly from that max payment to account for property taxes and insurance.