1. 25%
45%
A conservative economist will want you to
stay far away from debt and tell you to
keep housing costs below 25% of your
monthly income.
Banks are businesses,
and makes money by lending money
and being paid interest on that money.
Lenders will tell you to keep housing costs
around 45% of your monthly income.
28 36% %
BEST PRACTICE?
WHAT’S THE
THE WALL STREET JOURNAL (AND OTHER ECONOMISTS)
HAVE SAID THE BEST PRACTICE IS THE 28/36 RULE.
HOUSINGCOSTSSHOULD
BE 28% OF YOUR
MONTHLY INCOME.
ALL DEBTS INCLUDING
HOUSING SHOULD BE
36% OF YOUR MONTHLY
INCOME.
WHYIS THERE CONFLICTING ADVICEON
HOWMUCHYOU CAN SPENDONAHOME
?