Bragg Mutual FCU
Bragg Mutual FCU

How Much House Can You Afford?

Buying a home is a significant investment, and one of the biggest financial moves for most people. Anyone considering making such a considerable investment needs to have a good understanding of just how much of a house they can afford. Generally, your income, debts, down payment, long-term costs (in terms of interest rates), own financial picture, and other factors determine your home affordability. Using the 28/36 rule can help you figure out how much you can spend on a mortgage.

The 28/36 Rule for Affordability

Your maximum mortgage payment (rule of 28)

This rule focuses primarily on mortgage payment. As a general rule, your monthly mortgage payment (mortgage, taxes, and insurance payments) shouldn’t exceed 28 percent of your pre-tax monthly income.

Your maximum total housing payment (rule of 36)

This shifts focus to your total debt, maximizing it at 36% of your gross monthly income. It looks at how your monthly debt obligations and expenses such as credit cards, car payments, as well as mortgage payment compare to your monthly income. The lower, the better.

Get Pre-approved

If you’re looking to buy a home, make sure you get a mortgage pre-approval as this gives you a big advantage in the home-buying process. A pre-approval helps determine how much you can afford and what a lender would be willing to lend you. When buying a house, trust Bragg Mutual Federal Credit Union to allow you to shop for your new home the smart way and guide you in making careful considerations.

You can get pre-approved online by visiting We want to help you make smarter financial decisions. To learn more about our mortgages through Bragg Mutual, please visit or call 910-222-1500.

*Subject to credit approval. Rates disclosed reflect our best rates and may be different based on credit underwriting or services used. All loan rates are subject to change without prior notice. The information posted here is a service to our members. Although BMFCU strives for information accuracy, we do not guarantee or warrant information posted here.

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