What percentage of income should go to a mortgage?

The 36 percent model is another way to determine how much of your gross income should go towards your mortgage, and can be used in conjunction with the 28 percent rule. This is less about the mortgage-percent of income breakdown and more about your income and your overall debt.

How much should my monthly mortgage payment be?

Example: Let’s say you earn $7,000 every month in gross household income. Multiply that by 28% and that’s about what you can expect to spend on your monthly mortgage payment every month. So with a $7,000 gross income, your monthly home payment should be about $1,960 using the 28% model.

How are mortgage payments calculated?

This article looks at how mortgage payments are calculated and explains the common 28/36 rule that many lenders use to determine how much you can afford to pay. Lenders recommend that you not devote more than 28% of your gross yearly income toward a mortgage or more than 36% of your gross income to all debts, including a mortgage.