3x income, 28% rules do not apply to everyone

I keep reading about the 2-3x gross income and 28% of gross income threshold for mortgage/property tax/insurance. But the math doesn’t add up for me, and I can’t help but think I am missing something. Based on my math, I can comfortably go 3-4x gross income or 35%.

Expenses are 19% of my net tax income. Expenses include utilities, car/health insurance, food, gas, cell phone/subscriptions/internet, hair cuts, setting aside money for auto repairs. 1/5th of the expense allocation is “buffer” to account for random things including my full medical deductible.

Mortgage/prop tax/insurance would be 36% of my net tax income using the 28% rule (do not exceed 28% gross income).

Which would mean my savings rate is 45%.

Loan hitting 28% is roughly 3.8x my gross. But I am also saving 45%.

Am I missing something? “Never exceed 3x” and yet I’m saving half of my income (albeit some of this will go into house upkeep and repairs). Seems I can comfortably go to 4x and over 30% gross income. Are others out there comfortably going 3x, 4x, 4x+ their gross income on the loan size?

submitted by /u/Powderhound3131
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I keep reading about the 2-3x gross income and 28% of gross income threshold for mortgage/property tax/insurance. But the math doesn’t add up for me, and I can’t help but think I am missing something. Based on my math, I can comfortably go 3-4x gross income or 35%. Expenses are 19% of my net tax income. Expenses include utilities, car/health insurance, food, gas, cell phone/subscriptions/internet, hair cuts, setting aside money for auto repairs. 1/5th of the expense allocation is “buffer” to account for random things including my full medical deductible. Mortgage/prop tax/insurance would be 36% of my net tax income using the 28% rule (do not exceed 28% gross income). Which would mean my savings rate is 45%. Loan hitting 28% is roughly 3.8x my gross. But I am also saving 45%. Am I missing something? “Never exceed 3x” and yet I’m saving half of my income (albeit some of this will go into house upkeep and repairs). Seems I can comfortably go to 4x and over 30% gross income. Are others out there comfortably going 3x, 4x, 4x+ their gross income on the loan size? submitted by /u/Powderhound3131 [link] [comments]

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