Run both tests
Use the affordability calculator for the gross-income guideline lenders talk about. Then compare the monthly housing result with what is actually deposited.
If the housing line is more than you can send after the paycheck lands, the gross-income result is not a comfortable budget, even if the ratio looks familiar.
Escrow is part of the cash that leaves
Principal and interest are not the whole draft. Tax, insurance, PMI, and HOA leave the account too. The full payment calculator is the figure to compare with take-home pay.
A fixed rate does not freeze the escrow portion.
| Figure | Used for |
|---|---|
| Gross monthly | DTI and 28/36 |
| Take-home | Whether the draft fits the household |
Calculators
Related guides
Sources
Common questions
Which test matters more?
Lenders look at gross income. You still have to live on take-home pay. Fail either test and the payment is worth another look.
Do retirement contributions count as debt?
Not in the DTI fields on this site. They do reduce take-home pay, so they belong in the household budget.