Bar graphs are used to compare things between different groups or to track changes over time. However, when trying to measure change over time, bar graphs are best when the changes are larger. . . . an Area Graph. Area graphs are very similar to line graphs.
The typical bank limit on monthly mortgage payments is about 28 percent of your gross monthly income. Therefore, the bank thinks you can devote up to 28 percent of your household income to your mortgage payment and expenses (including taxes, insurance and association dues).
What monthly payment can you afford? Most lenders recommend that borrowers spend no more than 28 percent of their monthly income on a mortgage payment. For instance, if you make $8,000 a month and owe $500 in monthly debt payments, you could get a 30-year mortgage of up to $380,000 with 5 percent interest. Your monthly payments, representing 28 percent of your income, would be $2,040.