Affordability is not just the biggest loan a lender will approve — it is the payment you can comfortably live with. A common starting point is the 28/36 rule.
The 28/36 rule
Aim to keep your total housing payment at or below 28% of your gross monthly income, and all debt payments (housing plus car, student loans, credit cards) at or below 36%. These are guidelines, not hard limits, but they keep most budgets sustainable.
Don't forget the full payment
Affordability should be based on the full PITI payment plus HOA — not just principal and interest. Taxes and insurance can add hundreds of dollars a month.
Leave a cushion
Homes come with maintenance, repairs and higher utility bills. Buying a bit below your maximum leaves room for those costs and for life's surprises. Plug different prices into the calculator to find a payment that fits.