How much house can I afford?

Affording a house involves your income, debt-to-income ratio, credit score, and mortgage rate. The 28/36 rule suggests spending no more than 28% of your gross monthly income on housing, and total debt shouldn't surpass 36%. For instance, if your annual income is $221,000 (about $18,417 monthly), your mortgage payment should be less than $5,157. To calculate an affordable mortgage amount, consider a standard 30-year mortgage at an estimated rate. If you obtain a 3.5% rate, this monthly payment could support a mortgage of around $1,148,364. Remember, taxes, insurance, utilities, and maintenance, along with the size of your down payment, will also affect affordability.