How much of my gross income should go to my mortgage payment?


Banks generally like to see no more than 28% of your gross income going toward your mortgage payment. This includes not just the mortgage payment, but also the interest on the loan, property taxes, homeowners insurance, and a homeowners association fee (if there is one). Keep in mind that when you’re figuring your gross income, you’re paying your mortgage with your net income.

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Look at net income

So what looks good on paper using your gross income might look different to you when you see how much net income you’re spending on your house payments. Consider how much debt you have overall to determine whether you think you can afford a mortgage, not just what a lender tells you based on your gross income.

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