🏡 What is the 28/36 housing rule?

December 2, 2021


It comes as no surprise that buying a home is one of the most significant financial decisions you will make in your lifetime. Is it exciting? Yes. Should it be taken lightly? No.

Determining just how much home you can afford is a crucial step in the homebuying process. Fortunately, it doesn’t take a rocket scientist to come up with a smart budget strategy — there are a number of tried and true methods you can explore.

Most lenders agree that the 28/36 rule is a good starting point. What is it? It recommends one spend no more than 28% of their gross monthly income on housing expenses (mortgage payments, property taxes, insurance, and HOA) and up to 36% of their gross monthly income on all monthly debts payments.

We dive into finding the right balance of what you can comfortably afford on the Reali blog.

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