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Calculating exactly how much of a mortgage payment you would be able to afford under the 28 percent cap requires multiplying your gross monthly income by 28 percent.
For example, if you earn a gross income of $6,000 per month, your mortgage payment should be no more than $1,680 (28 percent of $6,000), and your total debt payments (including the mortgage ...
With an income of $93,336, you could have total debt payments of $2,800 per month — $2,178 for your house payment and $622 for all other debt payments combined.
Based on the 28% rule, your household should aim for an before-tax monthly income of $7,714 — or an annual gross income of about $92,568 ($7714 x 12) — to comfortably afford a $300,000 mortgage.
Assuming a 30-year fixed-rate mortgage at 6.5% interest, including estimated property taxes and insurance, the payment on a $400,000 mortgage would be around $2,857 a month.
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