28/36 Rule

Definition

A common standard used by lenders to determine how much credit to extend to a borrower.

Try it now

Home Affordability

Housing expenses should not exceed 28% of gross income, and total debt service should not exceed 36%.

Related Tools & Calculators

Continue your journey with these related tools

Home Affordability

Determine exactly how much house you can afford based on your income.

Real Estate Tools

Comprehensive real estate calculators for mortgages, investing, and affordability.

House Price Negotiation Tool

Get data-driven negotiation strategies and offer price recommendations.

Related Real Estate Terms

Expand your understanding with related concepts

Appraisal

An unbiased professional opinion of a home's value.

Appraisal Gap

The difference between the price a buyer agreed to pay for a home and the home's appraised value.

Closing Disclosure

A five-page form that provides final details about the mortgage loan you have selected.

Closing Disclosure (CD)

A five-page form that provides final details about the mortgage loan you have selected.

Contingency (Real Estate)

A clause in a real estate purchase agreement specifying an action or requirement that must be met for the contract to become legally binding.

View all Real Estate terms

This software is for simulation and planning purposes only. Outputs are estimates based on your inputs and do not constitute professional financial, legal, or tax advice. Always consult a qualified advisor before making business decisions.