After-tax house affordability
Traditional mortgage rules use gross income. That is useful for lender qualification, but household comfort depends on take-home pay. If you use 28% of monthly take-home pay, a $75K salary supports about $1,437 per month for total housing.
After-tax payment targets
| Rule | Monthly housing target | Use case |
|---|---|---|
| 25% of net pay | $1,283 | Conservative |
| 28% of net pay | $1,437 | Balanced |
| 35% of net pay | $1,796 | High-cost area stretch |
What to add beyond the mortgage
Property taxes, homeowners insurance, HOA fees, maintenance, utilities, and repair reserves all affect affordability. A house that fits a lender ratio may still feel too expensive after taxes and living costs.