I’ve seen statements saying “no more than 28% of your gross income” and “no more than 25% of net income” should go towards your monthly mortgage, but the difference between each figure is astonishing.
For example, if I make 200k gross annually, that means at 28%, $4,600 is the max for my monthly mortgage payment. But 25% of my net pay (~$137k) would be ~$2,800 for mortgage.
Can anyone advise as to why there are such drastic differences in the suggestions and what I should actually use for projecting my budget?
original posted by Dudealias to r/personalfinance on Tue, 05 Mar 2024 20:01:38 GMT.