The 28/36 rule says that as long as your total debt payments are under 36 percent of your gross income then you are not overextended.

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The statement is true. The 28/36 rule is commonly used by lenders to assess a borrower's ability to repay a loan. It recommends that a borrower's total debt payments, including the potential new loan, should not exceed 36% of their gross income, and their mortgage payments should not exceed 28% of their gross income. This ensures that the borrower can manage their debts without being overextended.

The 28/36 Rule Says That as Long as Your Total