Key Takeaways An affordable home means you're not living paycheck to paycheck. Your home shouldn't strain your finances. There are two popular housing affordability rules: the 30% rule and the 28/36 rule. You can also check whether your housing payment passes the cash-flow test, the shock test, and the stress test. Are you wondering whether you can actually afford your home? Well, you aren't alone. Maybe you can pay your mortgage or rent and cover basic expenses—but that's it. Saving feels impossib ...

When you apply for a mortgage, one way your lender will assess your financial capacity to afford your loan is to calculate your debt-to-income ratio (DTI). Your DTI ratio compares your total gross monthly income to your total monthly debt payments. Different mortgage lenders and loan programs have varying DTI ratio requirements. Learn more: How much house can you afford? Use our home affordability calculator. What is debt-to-income ratio? The term "DTI" can be confusing because most borrowers have two ...