# How Much Should Mortgage Be Based On Income

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Zillow’s Home Affordability Calculator will help you determine how much house you can afford by analyzing your income, debt, and the current mortgage rates.

And when it comes to finances, you might find a disparity between how much house you want and how much house you can afford.

We're looking to move and want to work out how much it is sensible to borrow.. Based on the amount we're looking to borrow I've calculated monthly. As to what proportion of your income should go on mortgage payments,

To determine how much house you can afford, most financial advisers agree that people should spend no more than 28 percent of their gross monthly income on housing expenses and no more than 36.

To determine how much house you can afford, use this home affordability calculator to get an estimate of the property price you can afford based upon your income and debt profile. Generally, lenders cap the maximum monthly housing allowance (including taxes and insurance) to lesser of Front End Ratio (28% usually) and Back End Ratio (36% usually).

The golden rule in determining how much home you can afford is that your monthly mortgage payment should not exceed 28 percent of your gross monthly income (your income before taxes are taken out). For example, if you and your spouse have a combined annual income of \$80,000, your mortgage payment should not exceed \$1,866.

One week’s paycheck is about 23 percent of your monthly (after-tax) income. If I had to set a rule, it would be this: Aim to keep your mortgage payment at or below 28 percent of your pretax monthly income. Aim to keep your total debt payments at or below 40 percent of your pretax monthly income.