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).
The 28 Percent Rule. In general, lenders follow the 28 percent rule -- meaning no more than 28 percent of your gross income should go to your mortgage. To calculate how much you can afford to spend on housing, start with your total monthly income before taxes.