28% of income to mortgage- clarification questions

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I think a lot of these guidelines come from mortgage companies and realtors who want you to borrow as much as possible without defaulting. the numbers come in a bit high in my opionion. I would be paying three times the amount that I do if I followed those rules. I like the idea of living in less of a house than some formula says I can afford and having money for the other aspects of life.

The point is to establish some standard by which someone can know if their housing payments are taking up too much of their cashflow.

To answer the question, "how much is too much?"

Not to answer the question, "what should I be spending on housing?"


If you are well under the 28% guideline, and are meeting all your family's housing needs, you're doing very well