WB..
I can tell you that you can get approved to carry more debt than you should be comfortable having.
The system wants you to be in debt…
I don’t think that there is a maximum ratio that is right for everyone. The more income you have the more dollars you have leftover, so a person with $3000 a month with a 50% ratio only has $1500 (gross) left, but someone with $5000 a month has $2500 a month leftover… Their net living expenses may be very similar.
You get approved based on gross income. You just need to know what you are comfortable with, and only factor in your tax benefit if you want to, otherwise it’s a bonus.
If you have fixed income, In general, I wouldn’t recommend total monthly debts much higher than 40%,
including housing expenses and personal expenses.
Many people have debts between 50% & 60% of their gross income, which is basically living beyond their means. Many people take home between 70%-80% of their gross, and can’t save anything.
