How Homebuyers Are Achieving Dave Ramsey’s 25% Mortgage Rule

May 20, 2026

A common homebuying rule advises keeping mortgage payments at or below 25% of monthly take-home pay, using a 15-year fixed loan with 20% down. However, with current 15-year rates around 5.44%, this limits affordability to households earning about $140,000, excluding many buyers. Rising taxes and insurance further strain budgets. A 30-year loan lowers payments but is discouraged by this advice. The rule protects against being house-poor but may now be unrealistic in today's market.

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LEE M JOHNSON

LEE M JOHNSON

+1-313-682-0291

LOAN OFFICER MORTGAGE 300/ EXP REALTOR

LOAN OFFICER MORTGAGE 300/ EXP REALTOR

Grosse Pointe Farms, Michigan

My approach is very simple! I answer my phone, do exactly what I tell you I will do and I treat every transaction as if it were my own!

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