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.
Earning $25,000/month? Capping your total mortgage payment at around $7,000 is often recommended — even if a lender says you qualify for much more.
"High income should be a tool — not a trap. We advise keeping housing reasonable and let your money work where it matters 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
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