Uses the trusted 28/36 rule — plus your real property taxes, insurance, PMI and HOA — to show a Safe, Stretch and Maximum home price.
Housing shouldn’t exceed 28% of gross monthly income; total debt shouldn’t exceed 36%. We solve for the maximum home price where your full monthly payment (principal, interest, property tax, insurance, PMI and HOA) still fits your budget.
What is the 28/36 rule? A widely used affordability guideline — housing 28% front-end, total debt 36% back-end.
Do you include property tax, insurance and PMI? Yes. And HOA. PMI applies automatically when the down payment is below 20%.
What is a jumbo loan? A mortgage over the conforming loan limit (approximately $832,750 in most of the US for 2026).