What percent of my income should go toward a mortgage?
A common guideline is that your total monthly housing payment, including principal, interest, property taxes, insurance, and HOA fees, should not exceed 28 percent of your gross monthly income. Some lenders allow up to 30 or even 35 percent depending on your debt-to-income ratio and credit profile. Your comfort level also depends on other debts, savings goals, job stability, and lifestyle expenses. Arizona property taxes are relatively low compared to many states, but utility costs during summer can be significant. It's wise to budget conservatively and account for maintenance, utilities, and an emergency fund beyond just the mortgage payment.
More on affordability and budgeting
- How much house can I afford?
- How much should I budget for maintenance and repairs each year?
- Should I pay off my car loan or student loans before buying a house?
- How much should I save besides the down payment?
- What will my total monthly payment be with taxes, insurance, HOA and PMI?
- What are typical utility costs in Phoenix for electric, water, gas and trash?
Meet Jon Hegreness
Jon Hegreness
REALTOR / Associate Broker · Howe Realty
AZ License BR540940000
Full-time Phoenix North Valley REALTOR and Associate Broker with 24 years in Arizona residential real estate. A negotiator and problem solver who works the way you would want a friend in the business to work: direct, on your side, and steady through the parts that get complicated.