Mortgage Affordability Guide
Understanding Your Debt-to-Income (DTI) Ratio
When underwriters review your mortgage application, the most critical metric they use is your Debt-to-Income (DTI) ratio. This calculates what percentage of your gross monthly income goes toward paying debts.
Our calculator includes an optional "Monthly Gross Income" input specifically to provide you a dynamic DTI front-end ratio warning within the UI.
The 28/36 Rule
A standard benchmark used by lenders is the "28/36 rule":
- Front-end ratio (28%): A maximum of 28% of your gross monthly income should go toward housing expenses (this perfectly aligns with your estimated PITI).
- Back-end ratio (36%): A maximum of 36% of your gross monthly income should go toward all debt combined (PITI + credit cards, student loans, auto loans).
Avoid Being "House Poor"
Qualifying for a massive loan on paper doesn't guarantee you can afford the accompanying lifestyle. Ensure you consider recurring household expenses (utilities, HOA fees, maintenance) which are largely omitted from core PITI calculations but heavily influence real domestic budgets.
Important Educational & Compliance Disclaimer
The affordability assessments computed by PITICheck use generic guidelines. It does not constitute financial planning or lending approval. Lenders have comprehensive underwriting requirements (including credit checks and asset verification) not accounted for by simple calculators. Always consult a licensed mortgage lender to receive a factual pre-approval letter based on federal lending standards.