How much house can I afford in 2023? Calculating how much house you can afford is one of the most important financial decisions you will ever make.

First, understand your income and expenses to get a realistic budget. Then you can use your gross income to determine two important ratios, known as the 28/36 rule. The 28 refers to your home payments in that your all-in-home costs should not exceed 28% of your gross monthly income. The 36 refers to your debt-to-income ratio. Your DTI is a target that the total of your monthly debt payments (including potential mortgage payments) should be less than 36% of your gross monthly income.

Mortgage lenders use these two ratios as benchmarks to determine how much loan you can qualify for. 

Additionally, you should look at the down payment you can make, as this will affect the total amount of your mortgage. By taking into consideration all of these factors, you can get a better understanding of how much house you can afford.

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