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Here's how much of your income you should be spending on housing
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Here's how much of your income you should be spending on housing

Is your current home affordable? The 30% rule dictates that you should spend no more than 30% of your gross monthly income on housing. For renters, that includes rent and utility costs like heat, water and electricity. If you own your home, you should include interest, homeowners insurance, property taxes and utilities, in addition to your mortgage.
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Wed, Jul 14 202111:31 AM EDT

Is your current home affordable? The most common rule of thumb to determine how much you can afford to spend on housing is that it should be no more than 30% of your gross monthly income, which is is your total income before taxes or other deductions are taken out. 

Watch the video to figure out if your current rent or mortgage is in line with how much you should be spending on your housing.