How Expensive Of A House Can I Buy May 2026

Spend no more than 30% of your gross monthly income on your mortgage payment.

The house price should not exceed three times your annual gross income. 4. The "Divide by 0.008" Rule (Quick Payment Estimate)

Have 30% of the home price saved (20% for down payment, 10% for closing costs and an emergency buffer). how expensive of a house can i buy

Your total monthly debt payments (housing costs + car loans, student loans, credit cards) should not exceed 36% of your gross monthly income. 3. The 30/30/3 Rule (Conservative Safety Net)

If you earn $100,000, your target home price is $300,000. Spend no more than 30% of your gross

Your monthly housing costs—including principal, interest, taxes, and insurance (PITI)—should not exceed 28% of your gross monthly income.

Developed to ensure you aren't "house poor," this rule adds a savings requirement: The "Divide by 0

To work backward from a comfortable monthly payment to a purchase price: Example: If you want to pay $2,400 a month: home price. Practical Steps to Calculate on Paper: What is the 30/30/3 Rule for Home Buying?