: Look at your take-home pay and subtract all current expenses (utilities, food, car, savings goals). What’s left is your true maximum for housing. The Calculation : Household Gross Annual Income : $100,000 (example) Estimated Monthly Payment : $2,500 (based on a 30% DTI)
Instead of just looking at the max loan a bank will give you, use this . It prioritizes your actual cash flow over bank limits. what value house can i afford to buy
: Spend no more than 28% of your gross monthly income on housing expenses and no more than 36% on total debt. : Look at your take-home pay and subtract