Vision Realty

How Much Can I Afford?

You must talk to a local lender and determine how much house you can afford! Nailing down your budget early will make the overall process more streamlined and less stressful.

How much can you afford:

The 28/36 Rule

The 28/36 rule is an established benchmark used by many lenders to determine how much credit to offer you. Here's how it works:


Get preapproved for a mortgage. Your lender can approve you for a loan amount which you will need to start your home search.  


The "28" refers to the notion that no more than 28 percent of your gross monthly household income should go toward housing costs, which include mortgage principal, interest, taxes and insurance.

To calculate, simply multiply your gross monthly income (amount before taxes) by .28. Use this amount as a guide for how much house you can afford.

Example: You earn an annual salary of $50,000. Divide 50,000 by 12, giving you a monthly gross income of $4,166.67. Multiply that by .28, and you'll find you should spend no more than $1,166 each month on total housing costs.

The "36" part of the 28/36 rule refers to your overall debt, which shouldn't exceed 36 percent of your income. This is very important to consider because debt loads – such as car and credit card payments on a monthly basis– impact the amount you can afford to spend on a house.

If you are a first time home buyer don't forget to figure taxes and insurance in on that monthly payment you just came up with.

Get In Touch

Local Expert Updates

Kristin De Jong  (Real Estate Agent)

Kristin De Jong

712.722.0045


Rachel Hoogeveen Sales Associate (Real Estate Agent)

Rachel Hoogeveen

Sales Associate

712.441.5100

712.722.0045


Karen Schuiteman Office Assistant (Real Estate Agent)

Karen Schuiteman

Office Assistant

712.722.0045


Darren Van't Hul  (Real Estate Agent)

Darren Van't Hul

712.578.9114

712.722.0045


Donna De Weerd Broker/Owner (Real Estate Agent)

Donna De Weerd

Broker/Owner

712.441.5627

712.722.0045


Community Updates

Donna De Weerd Broker/Owner (Real Estate Agent)

Donna De Weerd

Broker/Owner

712.441.5627

donnadw@mtcnet.net

Sioux Center Women's Expo

Local Happenings

We invite you to the 10th Annual Sioux Center Women’s Expo! We are excited to celebrate 10 years of the Expo and want to bring back all the guest favorites from the past 10 years! We will begin on

More Info
Donna De Weerd Broker/Owner (Real Estate Agent)

Donna De Weerd

Broker/Owner

712.441.5627

donnadw@mtcnet.net

Fields of Fun

Local Happenings

We hope you'll come to our farm on the outskirts of Sioux Center (East of town, on the bike trail, before you reach Sandy Hollow) and enjoy our petting zoo, great coffee and treats, baked goods,

More Info
Donna De Weerd Broker/Owner (Real Estate Agent)

Donna De Weerd

Broker/Owner

712.441.5627

donnadw@mtcnet.net

Seven Reasons to Make Sioux Center Your Home

Local Happenings

Sioux Center is growing so fast! We are finding that families are moving here for a variety of different reasons and we would like to share just a few with you. Small town feel with the big city

Your browser is out-of-date!

Update your browser to view this website correctly.

Update my browser now

×