What is the 28/36 rule?
Lenders use the 28/36 rule to determine affordability — spend no more than 28% of gross income on housing and no more than 36% on all debts combined. It's the most widely used benchmark in mortgage underwriting.
How much house can I afford on $80,000 a year?
At $80k/year with average debts and a 20% down payment, the 28/36 rule suggests a home price of roughly $280,000–$320,000. Use our full calculator for a personalized number.
What is PMI and when do I pay it?
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is under 20%. It typically costs 0.5%–1.5% of the loan annually and is removed once you reach 20% equity.
What's included in a mortgage payment?
A full mortgage payment — called PITI — includes Principal, Interest, Taxes (property), and Insurance (homeowners). Some loans also include PMI or HOA fees. Our calculators include all of these.
What is a good DTI ratio for a mortgage?
Most lenders prefer a back-end DTI under 36% and won't approve above 43–50% depending on loan type. FHA allows up to 50% with compensating factors. VA uses residual income rather than strict DTI limits.
How much are closing costs on average?
Closing costs typically range from 2%–5% of the purchase price. On a $400,000 home, expect $8,000–$20,000. Use our closing costs calculator to get a full itemized estimate with state-specific transfer taxes.
Is it better to rent or buy right now?
It depends heavily on how long you plan to stay. Under 3 years, renting often wins financially. Over 7 years, buying typically builds more wealth. Our rent vs. buy calculator gives you a personalized break-even year.
What are the benefits of a VA loan?
VA loans offer $0 down payment, no PMI, lower interest rates, and no loan limits — all for eligible veterans, active military, and surviving spouses. The only cost is a one-time funding fee (waived for disabled veterans).