Home Affordability Calculator
Calculate maximum home price you can afford based on income, debts, and down payment. Determine affordable mortgage amount.
How it works
Calculates maximum home price based on your payment capacity, down payment, and monthly expenses. Factors in taxes, insurance, and debt ratios.
Example
$2,500 max payment - $400 taxes/insurance = $2,100 for P&I. At 6.5%, 30-year = ~$333K loan capacity.
FAQ
What's the 28% rule for housing?
The 28% rule suggests housing costs shouldn't exceed 28% of gross monthly income. This includes principal, interest, taxes, and insurance (PITI).
What's the debt-to-income ratio limit?
Most lenders prefer total debt-to-income ratios below 36-43%. This includes housing payment plus all other monthly debt obligations.
Should I max out my affordability?
Not necessarily. Consider your comfort level, emergency fund needs, maintenance costs, and other financial goals before maximizing your housing budget.
What costs aren't included in this calculation?
This doesn't include utilities, maintenance, repairs, or moving costs. Budget an additional 1-2% of home value annually for maintenance.
How does down payment affect affordability?
Larger down payments reduce loan amount, eliminate PMI, and lower monthly payments, allowing you to afford a higher-priced home.