How Much of Your Monthly Paycheck Should Go to Your Mortgage?

28 Percent

You should not spend more than 28 percent of your monthly paycheck on your mortgage, according to Bankrate. When calculating the 28 percent, use your pretax income, not your take-home pay.

Consider Other Debts

If you have other debts, such as student loans or car payments, the total for your debt payments, including your mortgage, each month should not exceed 36 percent, according to Bankrate.

Bottom Line

The amount you can spend on your mortgage depends on your other debt obligations. Your mortgage should not exceed 28 percent of your income, but this amount should go down if your other debts exceed 8 percent of your income. For example, if your other debts amount to 10 percent of your income, you should spend no more than 26 percent on your mortgage.

References

• Bankrate: How Much House Can You Buy?
• Investopedia: How Much House Can You Afford?