Can you afford to buy a home?

Summary

In this short CNBC personal-finance segment, Sharon Epperson explains how to assess home affordability using the 28/36 rule. She says housing costs should stay below 28% of gross income and total debt below 36%, while noting that higher ratios may still get mortgage approval if approached cautiously.

• Sharon Epperson addresses whether viewers can afford to buy a home.
• She introduces the 28/36 rule for evaluating housing affordability.
• Housing expenses are advised to stay at or below 28% of gross income.
• Total debt is advised to stay at or below 36% of gross income.
• Borrowers with higher ratios may still be approved for a mortgage.
• She advises caution for those proceeding with higher debt-to-income ratios.