There are different rules and guidelines to determine what percentage of your income should go towards your mortgage payment. Here are some of the most popular models:

• 28% Rule: This rule states that you should spend 28% or less of your monthly gross income on your mortgage payment, including principal, interest, taxes, and insurance. To determine how much you can afford using this rule, multiply your monthly gross income by 28%. For example, if you make $10,000 every month, multiply $10,000 by 0.28 to get $2,800. Using these figures, your monthly mortgage payment should be no more than $2,800.

• 35% / 45% Model: With this model, your total monthly debt, including your mortgage payment, shouldnt be more than 35% of your pre-tax income, or 45% more than your after-tax income. To calculate how much you can afford with this model, determine your gross income before taxes and multiply it by 35%. Then, multiply your monthly gross income after youve deducted taxes by 45%. The amount you can afford is the range between these two figures.

• 25% Post-Tax Model: This model states that your total monthly debt should be 25% or less of your post-tax income. To calculate how much you can afford with the 25% post-tax model, multiply your monthly income after taxes by 0.25.

Its important to note that these models are just guidelines, and there is no one-size-fits-all approach. Lenders may have their own guidelines on how much of your income should go towards your mortgage, but ultimately, you should base your mortgage budget on your individual income levels, designating a percentage of your income to the mortgage payment.