Home affordability is a crisis due to high prices and mortgage rates around 6.5%, causing many to become "house poor" by spending too much on housing. Monthly housing payments include principal, interest, taxes, insurance, and possibly HOA dues. Experts recommend budgeting carefully: the 25% rule suggests spending no more than 25% of post-tax income on housing, while the 28/36 debt-to-income ratio limits housing costs to 28% of pre-tax income and total debt to 36%.
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