Buying a home is one of the biggest financial decisions you’ll ever make — and the first question most people ask is: “How much house can I afford?” Whether you’re a first-time buyer or looking for your next dream home, having a clear understanding of your budget is the key to a smooth and successful journey.
Let’s break it down in a simple way!
1. Start With the 28/36 Rule
This is a popular guideline used by lenders to help determine affordability.
✅ 28% Rule: No more than 28% of your gross monthly income should go toward housing expenses (this includes mortgage, taxes, insurance, HOA, etc.).
✅ 36% Rule: Your total debt (including car loans, student loans, credit cards, etc.) should not exceed 36% of your gross monthly income.
💡 Example: If you earn $6,000/month:
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28% of that is $1,680 (max for housing expenses)
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36% is $2,160 (max for total debt payments)
2. Consider Your Down Payment
The more you put down, the lower your loan amount and monthly payment.
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20% Down: Helps you avoid private mortgage insurance (PMI)
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5–10% Down: Still an option, but may include PMI and higher monthly costs
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First-time buyer? There are low-down-payment programs (as low as 3%) available!
3. Estimate Other Costs
Owning a home comes with extra expenses beyond your mortgage:
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Property taxes
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Homeowners insurance
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HOA fees (if applicable)
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Maintenance & repairs
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Utilities
Make sure to factor these into your monthly budget!
4. Use a Mortgage Calculator
A quick and easy way to get a ballpark estimate is using a mortgage affordability calculator. Just plug in your income, debts, and down payment to see how much house fits your financial comfort zone.
5. Talk to a Local Lender
Before house hunting, it’s smart to get pre-approved. This gives you a realistic price range and strengthens your offer when you’re ready to buy.
Final Thoughts
Affordability isn’t just about what the bank says — it’s about what feels comfortable for you. Think about your lifestyle, goals, and long-term plans. Owning a home should bring joy and stability, not financial stress.
If you’re thinking about buying in the St. Pete or Tampa Bay area and want help figuring out your numbers — I’m here for you! Let’s make a plan that works for your budget and your dreams.
📲 Reach out anytime — happy to help you run the numbers or connect you with a trusted lender.
