When it comes to buying a home, one of the first and most important questions is, What is the max I should pay for my mortgage? The answer to this question is the Mortgage Rule 28%. This rule states that you should not pay more than 28% of your monthly income in mortgage payments, including principal, interest, taxes, and insurance. Here are some bullet points that explain the logic behind this rule:
Financial experts advise that your monthly housing expenses should not exceed 28% of your monthly income.
By following this rule, you can avoid becoming house poor and having little left over for other essential expenses.
Most lenders use this rule to determine the maximum mortgage payment that you can afford.
However, keep in mind that this rule is a guideline, and you should also factor in other financial obligations and goals when determining your comfortable mortgage payment.
In summary, the Mortgage Rule 28% is a useful guideline to follow when determining the maximum amount you should pay for your mortgage. It ensures that you can comfortably afford your housing expenses while maintaining a healthy financial situation.