The 28% rule says that your mortgage payment should be no more than 28% of your monthly gross income.
A mortgage is a kind of loan that is used to buy or keep a house, land, or other piece of real estate. The borrower agrees to make payments to the lender over time, usually in a series of regular payments that split the cost of the loan between interest and principal. The property then acts as security for the loan.
A mortgage is a contract between you and a lender giving the lender the right to take your property if you don't pay back the money you borrowed, plus interest. You can use a mortgage loan to buy a house or borrow money against the value of a house you already own.
The "28% rule" stipulates that your mortgage payment (including principal, interest, taxes, and insurance) should not exceed 28% of your monthly gross income. By multiplying your monthly gross income by 28 percent, you can use this rule to determine how much you can afford.
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