Discover if you qualify for a mortgage with our free 28/36 Rule Calculator. This tool helps you quickly assess if your housing expenses and total debt obligations align with common lender guidelines based on your gross monthly income. Understand your financial readiness for a home purchase with clear results.
Formula:
The 28/36 rule involves two key ratios:
- Front-End Ratio (28% Rule): (Monthly Housing Expenses / Gross Monthly Income) × 100 ≤ 28%
- Back-End Ratio (36% Rule): (Total Monthly Debt Payments / Gross Monthly Income) × 100 ≤ 36%
Where:
- Monthly Housing Expenses: Includes principal, interest, property taxes, homeowner's insurance, and HOA fees.
- Total Monthly Debt Payments: Sum of monthly housing expenses and all other recurring debts (credit cards, car loans, student loans, etc.).