Mortgage

Wondering how much of a home loan you can get? Lenders typically approve a mortgage based on three pillars: your debt-to-income (DTI) ratio, your down payment, and the interest rate available to your credit profile. A common rule is the 28/36 guideline — housing costs under 28% of gross monthly income, and total debts under 36%. For example, a household earning $90,000 per year ($7,500/month) with $400 in existing monthly debts could often qualify for a mortgage payment near $2,300, translating to roughly $340,000–$370,000 in loan principal at a 6.5% rate over 30 years.