Mortgage Action Plan

One printable sheet that ties affordability, term, PMI, and closing costs together

Build your Mortgage Action Plan

Enter your numbers. The plan applies the 28/36 rule, compares 15- vs 30-year terms, and flags PMI and closing costs.

Annual household income ($)Monthly debt payments ($)Down payment ($)Assumed rate (%)Property tax rate (%)Name (for printout)

Homebuyer — Mortgage Action Plan

Max affordable home price (28/36 rule)

$498,419

Max monthly housing payment $2,800 · Loan-to-value 88%

15-year vs 30-year term

Term	Monthly P&I	Total interest
30-year	$2,800	$569,581
15-year	$3,843	$253,365

Choosing 15-year saves about $316,217 in interest.

PMI applies

Your down payment is under 20%. Reach $99,684 (20%) to drop PMI and lower the monthly cost.

ARM vs fixed

A 5/1 ARM often starts near the 30-year fixed but can reset after year 5. If you will stay 7+ years, the fixed rate is usually the safer base case; an ARM can make sense for a shorter hold.

Closing costs

Budget roughly $9,968–$24,921 (2–5% of price) on top of the down payment.

Go / No-Go: Your numbers fit within the 28/36 guideline — proceed to compare lenders.

Educational estimate using the 28/36 rule and standard amortization. Not a loan offer or commitment. Verify rates, PMI, and taxes with your lender.

How to use your Mortgage Action Plan

Step 1: Enter your real numbers

Use your actual gross income, monthly debt minimums, available down payment, and a current market rate (30-year fixed averaged about 6.6% in August 2026). The plan applies the 28/36 rule to find the most you can responsibly borrow.

Step 2: Decide the term

The 15- vs 30-year comparison shows the monthly trade-off and the lifetime interest difference. Pick the term that fits your cash flow and long-term cost tolerance.

Step 3: Print and take it to lenders

Click print for a clean letter-size plan. Bring it when you shop 3–5 lenders so you can compare their Loan Estimates against your own target price and payment.

Estimates only — verify rates, PMI, taxes, and approval with a licensed lender.

Official Standards & Authoritative Sources

CFPB

Ability-to-Repay & Qualified Mortgage rule (43% back-end cap)

consumerfinance.gov

FHA

Front-end 31% / back-end 43% underwriting ratios

hud.gov

Freddie Mac

Why comparing lenders saves money

freddiemac.com

Bankrate

Current mortgage & refinance rates (retrieved 2026-08-11)

bankrate.com

Frequently Asked Questions

What is the 28/36 rule this plan uses?

The 28/36 rule is the conventional underwriting benchmark: keep your housing payment at or below 28% of gross monthly income (front-end) and total debt payments at or below 36% (back-end). The plan takes the tighter of the two.

Why compare 15-year and 30-year terms?

A 30-year term lowers the monthly payment but costs far more in total interest; a 15-year term is cheaper overall but harder on cash flow. The plan shows both monthly payments and the lifetime interest difference so you can decide with real numbers.

When does PMI apply?

Private mortgage insurance is typically required when your down payment is under 20% of the price. The plan flags this and shows the 20% threshold that removes PMI.

Is the Go/No-Go a loan approval?

No. It only checks your inputs against the 28/36 guideline. Your actual approval depends on credit, reserves, the property, and the lender — use the plan to arrive prepared, then confirm with a loan officer.

Should I choose an ARM or a fixed rate?

If you expect to stay in the home 7 or more years, a fixed rate is usually the safer base case because it cannot reset. An ARM can save early if you will sell or refinance before the fixed period ends, but carries reset risk.

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