Kefiw

Archived noindex page. Kefiw's public focus is Property decision help.

Archived page

This older Kefiw page is kept for reference, marked noindex, and removed from the primary sitemap. The current Kefiw experience is focused on property decisions: cost, quotes, damage, buying, selling, owning, and packets.

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How Much Mortgage Can I Actually Afford?

The 28/36 rule, PITI, and the number your lender will not tell you.

Pick a loan size you can live with, not just the one you qualify for.

Lenders approve loans based on gross income and debt-to-income ratios. Your actual cash-flow reality is different. The gap between approved and affordable is where most first-time buyers get squeezed.

Quick answer

Pick a loan size you can live with, not just the one you qualify for.

What you are trying to do
The 28/36 rule, PITI, and the number your lender will not tell you.
Best next step
Mortgage Calculator
Limit to remember
Treat this as a practical aid for the task, not a replacement for professional judgment.

Key points

  • ▸ The 28/36 rule: housing PITI should be at most 28% of gross monthly income, total debt at most 36%.
  • ▸ PITI = Principal + Interest + Taxes + Insurance. On a $400k home with 20% down at 7%, that is roughly $2,130 P&I plus $500-$800 taxes/insurance.
  • ▸ If down payment is under 20%, add PMI — typically 0.5-1.5% of the loan annually, or $165-$500/mo on a $400k loan.
  • ▸ HOA dues are not in PITI but absolutely are in your cash flow. A $350/mo HOA kills $52,500 of buying power at 7%.
  • ▸ Lenders may approve 43% DTI. That does not mean you should spend it.

Examples

  • The approved-but-broke trap
    Household income $120k/yr gross = $10k/mo. Lender approves 43% DTI = $4,300/mo housing. But after taxes, 401k, healthcare, take-home is ~$6,800. A $4,300 PITI leaves $2,500/mo for everything else. That is not a life.
  • Running the 28% number
    Same $10k gross x 28% = $2,800/mo housing cap. Back out $600 taxes+insurance and $150 HOA and you have $2,050/mo for P&I, which at 7% over 30 years supports a loan of about $308k.
  • The PMI penalty
    On a $400k loan, putting down 10% instead of 20% triggers PMI at ~$250/mo. That is $3,000/yr going nowhere, for roughly 7 years until you hit 22% equity.

When to use which tool

Related

Frequently asked questions

› Should I use gross or net income for the 28% rule? Trust & accuracy

The rule is traditionally gross, but if you are in a high-tax state or max out retirement savings, run it against take-home too. If both pass, you are safe.

› Does the 28/36 rule include my HOA?

Yes — include HOA in the 28% housing number. It is a non-negotiable monthly cost and lenders count it in DTI.

› How should I use this guide with a Kefiw tool? How-to

Use the guide as the plan and the linked Kefiw tool as the check. Read the steps first, try the move manually, then use the tool to compare outputs, catch edge cases, and decide whether the result actually fits your task.

› What mistake do tool guides help avoid? Troubleshooting

Tool guides help avoid using a utility mechanically without understanding what you are trying to accomplish. Most word, writing, and text utilities are fast, but speed can hide context mistakes. Know whether you are solving a puzzle, cleaning copy, drafting a line, or checking a rule.

› Can a tool guide help me learn the skill? How-to

A tool guide can help you learn if you pause before accepting the output and ask why it worked. Compare your first guess with the tool result, look for the rule or pattern, and repeat that review. Passive copying solves one task; active review builds the skill.