Can You ACTUALLY Afford That House? — 28/36 Rule Explained
Goes beyond the rule of thumb — shows exactly how to calculate front-end and back-end DTI, why lenders use both ratios, and how income, debts, and down payment interact to set your maximum loan amount.
What you'll learn
- The 28% front-end DTI rule (housing ÷ gross income) and the 36% back-end rule (all debt ÷ gross income)
- How existing monthly debts (car, student loans, credit cards) directly reduce your maximum home price
- Why a $400/month car payment can lower your maximum home price by $40,000–$60,000
- How to work backwards from a comfortable payment to a purchase price