Guide · Housing
How much should my mortgage payment be?
The short answer
Keep your full housing payment at or under 28% of your gross income, and all your debt payments under 36%. On $100,000 a year that's about $2,333 a month for principal, interest, taxes and insurance.
The 28/36 rule
28%is the “front-end” limit: your housing payment, including property taxes and homeowners insurance, as a share of gross monthly income. 36%is the “back-end” limit: housing plus every other debt payment (car, student loans, card minimums). Whichever limit is lower sets your comfortable payment, which is why paying off a car loan can raise the house you can afford.
The payment and home price that fit your income
At 7.28% on a 30-year loan (this week's national average, as of Oct 1, 2026; see today's rates), with $40,000 down, $500 a month of other debt payments and property tax at 0.89% of the price a year — the national average effective rate (2024 American Community Survey). Your county's rate can be a third of that or double it.
| Income | 28% payment cap | Home you could afford |
|---|---|---|
| $60,000/year | $1,400/mo | $190,652 |
| $80,000/year | $1,867/mo | $252,188 |
| $100,000/year | $2,333/mo | $309,378 |
| $125,000/year | $2,917/mo | $381,052 |
| $150,000/year | $3,500/mo | $452,875 |
| $200,000/year | $4,667/mo | $596,834 |
Your own debts, down payment and tax rate change these a lot. Run them in the home affordability calculator.
Approved isn't the same as affordable
A lender's job is to judge whether you'll repay, not whether the payment leaves room for retirement savings, childcare or a new roof. Approvals above 36% total debt are common. Use the approval as a ceiling and the 28/36 rule as the payment you'll still be comfortable with in a bad month.
Costs the headline payment leaves out
Put less than 20% down on a conventional loan and you'll usually pay private mortgage insurance (PMI) until your balance reaches about 78%–80% of the home's original value. The mortgage calculator adds it automatically; the home prices in the table above don't. Also plan for maintenance, HOA dues and closing costs. And if you're torn about buying at all, the rent vs. buy calculator compares the two over time.
Frequently asked questions
What percentage of my income should go to my mortgage?
The 28/36 rule keeps your total housing payment (principal, interest, property taxes and insurance) at or under 28% of your gross monthly income, and all debt payments, housing included, under 36%. On $100,000 a year that's about $2,333 a month for housing.
Is the 28% rule based on gross or net income?
Gross, before taxes, because that's what lenders use. Your take-home pay is lower, so a payment at exactly 28% of gross can feel tighter than it sounds. Check it against your real paycheck too.
Why would a lender approve more than I can afford?
Lenders decide whether you're likely to repay, not whether the payment leaves room for savings, childcare or repairs. Many approve total debt ratios well above 36%. Treat the approval as a ceiling and the 28/36 rule as your comfort zone.
Does the payment include PMI?
It should if you put less than 20% down on a conventional loan, since you'll usually pay private mortgage insurance until your balance reaches about 78%–80% of the home's original value. Our mortgage calculator adds PMI automatically under 20% down (you can set the rate to your lender's quote). The home prices in the table above don't include it.
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