Financial Glossary
Mortgage Affordability
Mortgage affordability refers to how much home you can reasonably purchase based on your income, existing debts, down payment, and current interest rates. Lenders use the 28/36 rule: no more than 28% of gross monthly income for housing costs and no more than 36% for total debt payments. Your credit score and employment history also affect affordability.
Example
With a $75,000 annual salary ($6,250/month), no other debts, and a 20% down payment, you can afford approximately $2,500 monthly housing costs. At current interest rates, this translates to a home price of roughly $350,000-$400,000 depending on property taxes and insurance.
Frequently Asked Questions
How much house can I afford with a $75,000 salary?
With a $75,000 salary, zero debt, and 20% down, you can typically afford a home between $350,000 and $400,000. Your actual affordable price depends on interest rates, property taxes, insurance, and HOA fees. Use our mortgage calculator for a personalized estimate.
What is the 28/36 rule?
The 28/36 rule states that no more than 28% of your gross monthly income should go to housing costs, and no more than 36% should go to total debt payments including housing. This is a guideline lenders use to determine mortgage approval and affordable loan amounts.
Related Resources
Official Sources
India calculators use data from the following official government agencies:
- Income Tax Department — Income tax slabs, exemption limits, and deduction rules under the Income Tax Act.
- Data.gov.in — Open government data including economic indicators and demographic statistics.
- Ministry of Finance — Union Budget, fiscal policy, and GST rate notifications.
- Reserve Bank of India (RBI) — Repo rate, inflation data, and housing loan guidelines.
Methodology
Our India calculators use income tax slabs, GST rates, and contribution limits published by the Income Tax Department and the Ministry of Finance. Economic data is sourced from Data.gov.in and the Ministry of Statistics and Programme Implementation (MOSPI). All figures are for educational purposes and should be verified with a qualified chartered accountant.
Data Sources
All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.
Last updated: June 2026. Information may change; always verify with official sources.
Last Updated: June 2026 — Reviewed Against Official Sources