Just because you can afford a big mortgage doesn’t always mean you should. For high earners, the 28% rule is often suggested:
This rule is based on the recommendation to keep your mortgage principle, interest, taxes and insurance (PITI) under 28% of your gross monthly income.
This often helps provide more financial flexibility — use it to build wealth, not inflate lifestyle. Overspending on housing can silently drain your ability to invest, save aggressively, or pursue financial freedom early.
Capping your total mortgage payment at around 7,000 of often recommended even if a lender says you qualify for much more.
We advise keeping housing reasonable, to allow you to invest towards what matters to you most.
It is wise to factor in other expenses—emergency savings, retirement, and lifestyle costs.
H. Brad Kerr IV, Vice President/ Wealth Management, Financial Advisor
215.619.3926/ bkerr4@janney.com
1767 Sentry Parkway West Suite 110 Blue Bell, PA 19422
For more information about Janney, please see Janney's Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.
