How much house can I afford?

The traditional guideline is that your total housing costs (PITI) should not exceed 28% of gross monthly income, and total debt payments not exceed 36% (the 28/36 rule). Lenders often use up to 43–45% for total debt ratio.

What is PMI and how do I avoid it?

Private Mortgage Insurance (PMI) is required when your down payment is below 20%. It protects the lender, not you, and costs 0.5–1.5% annually. Avoid it with a 20% down payment, or eliminate it when your equity reaches 20% by requesting cancellation.

What is the difference between a fixed and adjustable rate mortgage?

A fixed-rate mortgage has the same interest rate for the entire term. An ARM starts with a lower rate that adjusts periodically based on market indexes — carrying more uncertainty but potentially lower early payments.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has a higher monthly payment but lower total interest (often by hundreds of thousands). A 30-year has lower payments but you pay far more in total. Many financial advisors suggest the 30-year with disciplined extra payments for flexibility.

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