Home Affordability Calculator
Calculate how much house you can afford based on income, debts, and down payment. Use DTI ratios and loan qualification guidelines to get a realistic home buying budget.
Income & Debts
Your total income before taxes
Car loans, student loans, credit cards, etc.
Most lenders require 43% or less
Loan Details
Additional Monthly Costs
Annual rate as percentage of home value
Annual premium
Monthly fees if applicable
You Can Afford
$392,074
Maximum Home Price
Loan Amount
$313,659
Down Payment
$78,415
Monthly Payment Breakdown
Total Monthly Payment$2,500
Principal & Interest$1,983
Property Taxes$392
Home Insurance$125
P&I Taxes Insurance
Tips for Home Buyers
- • Keep your total housing costs below 28% of gross income
- • Save for closing costs (typically 2-5% of home price)
- • Build an emergency fund before buying
Why Use a Home Affordability Calculator?
Before house hunting, it's crucial to know your budget. Lenders use debt-to-income ratios to determine how much you can borrow. This calculator uses the same guidelines to help you understand your price range and avoid overextending financially.
Frequently Asked Questions
What is DTI (Debt-to-Income) ratio?
DTI compares your monthly debt payments to your gross monthly income. Lenders typically want your total DTI (including housing) below 43%, though some allow up to 50% with strong compensating factors.
How much down payment do I need?
Conventional loans require 3-20% down, FHA loans require 3.5%, and VA/USDA loans may require 0%. A 20% down payment avoids PMI (Private Mortgage Insurance) and typically gets better rates.
What costs are not included in monthly payments?
This calculator may not include PMI, utilities, maintenance, or repairs. Budget an additional 1-2% of home value annually for maintenance and unexpected repairs.
Should I buy the maximum I can afford?
Not necessarily. Consider your lifestyle, job stability, and other financial goals. Many advisors recommend spending no more than 25-28% of gross income on housing to maintain financial flexibility.
How do property taxes affect affordability?
Property taxes vary significantly by location (0.3% to over 2% of home value). Higher taxes reduce your maximum home price since they're included in your monthly payment calculations.