What we can afford is different that what we should pay

A potential client I was speaking to the other day got me thinking about what we CAN afford in terms of monthly mortgage payments and what we SHOULD be paying.  

I'm not in the mortgage industry, so correct me if I'm wrong, but a mortgage should equal no more than 28% of your monthly gross income.  Total debt should be no more than 36%.  I think some people look at these numbers and forget that they are maximums.  If 28% is the max of what your mortgage should be, then wouldn't it be nice to have a mortgage that is 20%?  

The wisdom of living beneath your means applies well here.  Plus when it comes to home buying, if you don't max yourself out on the mortgage, then think of the money you'll have to buy the furnishings!