The percentage of income that is considered financially responsible for home payments can vary depending on individual financial circumstances and the prevailing economic conditions. However, a commonly recommended guideline is that your monthly housing costs, including your mortgage payment, property taxes, homeowners insurance, and any homeowners association fees, should not exceed 28% to 30% of your gross monthly income.
This guideline is often referred to as the “28/36 rule,” where 28% represents the maximum percentage of your gross monthly income that should go toward housing costs, and 36% represents the maximum percentage that should go toward all debt payments, including housing costs and other debts like car loans or credit card payments.
It’s important to note that these are general guidelines, and what is financially responsible for home payments can vary based on your personal financial situation. Factors such as your overall debt load, credit score, down payment amount, and other financial goals can influence what percentage of your income is appropriate for housing costs. It’s essential to create a detailed budget and consider your individual circumstances when determining how much you can comfortably allocate to your home payments. Additionally, it’s advisable to consult with a financial advisor or mortgage lender to get personalized guidance based on your specific situation.