Mortgage Affordability Calculator
Find out how much home you can afford based on your income, debts, and down payment.
Car loans, student loans, credit cards, etc.
You Can Afford a Home Worth
Performance Forecast
Mortgage Affordability Scenarios
Comparison of how much house you can afford based on different Debt-to-Income (DTI) ratios.
| Scenario | DTI Ratio | Monthly Budget | Affordable Home Price |
|---|---|---|---|
| 1 Conservative (28% DTI) | 28% | $1,833 | $276,527 |
| 2 Moderate (36% DTI) | 36% | $2,500 | $367,593 |
| 3 Aggressive (43% DTI) | 43% | $3,083 | $447,276 |
How Much House Can You Afford?
Understanding your true home buying power is the first step in the real estate journey. Lenders look at several factors to determine how much they are willing to lend you.π‘οΈ The 28/36 Rule
Standard mortgage underwriting follows the 28/36 Rule: 1. Housing Ratio (28%): Your total monthly housing expenses (PITI: Principal, Interest, Taxes, Insurance) should not exceed 28% of your gross monthly income. 2. Total Debt Ratio (36%): Your housing expenses plus all other monthly debts (student loans, car payments, etc.) should not exceed 36% of your gross monthly income.Factors That Impact Your Affordability
* Interest Rate: A 1% increase in interest rate can reduce your buying power by approximately 10%. * Down Payment: A larger down payment reduces your loan amount and can eliminate the need for Private Mortgage Insurance (PMI). * Location (Taxes): Property taxes vary wildly by state and county. Moving a few miles across a border can change your affordability significantly. * Debt Load: Paying off a car loan or credit card can free up hundreds of dollars in your monthly budget, which can translate to $50,000+ in additional mortgage capacity.Frequently Asked Questions
Q: What is DTI? A: Debt-to-Income ratio. It's the percentage of your gross monthly income that goes to paying debts.Q: Can I exceed 36% DTI? A: Yes, many lenders allow up to 43% or even 50% for certain loan types (like FHA loans), but it increases your financial risk.
Results Mortgage Affordability Calculator
This is a powerful online tool designed to help you calculate your Finance metrics instantly. We are dedicated to providing accurate and easy-to-use financial and life tools.
Community Feedback
"This really put things into perspective. I was looking at houses way outside my 28/36 comfort zone."
"Clean interface and easy to use. The property tax estimate feature is very helpful."
"Helpful for planning my house hunt next year."
Explore More Tools
View All Tools β
LLC Filing & Registration Cost Calculator
Estimate the total cost to form and maintain an LLC in any US state, including filing fees and annual taxes.
Mortgage Extra Principal Calculator
See how much time and interest you save by adding extra monthly principal payments.
Mortgage Repayment Calculator
Calculate your estimated monthly mortgage payments, including principal and interest.