What Is the 28/36 Rule for Home Affordability?

This is the same rule that banks use to determine how much money to lend you.

Banks and other lending institutions have a formula they often use to determine how much you can afford to pay for a house: the 28/36 rule. Dreamstime/TNS

By Jim Probasco Bankrate.com

“How much can I afford to pay for a house?” It’s a question all hopeful homebuyers ask themselves. Coming up with a monthly payment that works for you might be easy—simply subtract your monthly expenses from your gross monthly income.