How Expensive Of A House Can I Buy May 2026

Have 30% of the home price saved (20% for down payment, 10% for closing costs and an emergency buffer).

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

Lenders use these percentages to determine your ratio. how expensive of a house can i buy

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?

Your monthly housing costs—including principal, interest, taxes, and insurance (PITI)—should not exceed 28% of your gross monthly income. Have 30% of the home price saved (20%

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

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) To work backward from a comfortable monthly payment

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