What Is the 3-7-3 Rule in Mortgages?
The 3-7-3 rule is a quick way lenders and homebuyers estimate how much house you can afford:
- 3x your annual income for a down payment – Typically, lenders like to see you put about 3% down for a conventional loan (or more if possible).
- 7x your annual income for the mortgage – Your mortgage amount should be roughly 7 times your yearly income, keeping payments manageable.
- 3% of your income for monthly payments – Ideally, your monthly mortgage payment (principal, interest, taxes, insurance) stays around 3% of your annual income divided by 12.
Think of it as a shortcut to figure out what you can comfortably afford without overextending.
At Trealtorr, we take it further: we look at your full financial picture, explore first-time buyer programs, grants, and lender options, and make sure your mortgage fits your lifestyle — not just the rule of thumb.
📲 Call or text us today at +1 (347) 831-6085 — we’ll help you figure out how much home you can comfortably afford!