Home Affordability Calculator
Find out how much house you can afford based on income, debts, down payment, and debt-to-income ratio.
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Frequently asked questions
- How much house can I afford?
- A common guideline is that your total monthly housing cost should stay within about 28 to 36 percent of your gross monthly income, including other debts. This calculator applies your chosen debt-to-income limit to your income, subtracts existing debts, taxes, and insurance, and converts the remaining budget into a maximum loan and home price.
- What is debt-to-income ratio (DTI)?
- DTI is the share of your gross monthly income that goes toward debt payments, including the new mortgage. Many lenders cap total DTI around 36 to 43 percent. Lowering the DTI setting gives a more conservative, safer home price; raising it shows the lender maximum.
- Does a larger down payment increase what I can afford?
- Yes. The down payment is added directly to the maximum loan to give the home price you can afford, and a larger down payment also reduces the loan balance and monthly payment, which can help you qualify. It may also help you avoid mortgage insurance.
- Why do property tax and insurance lower my budget?
- Lenders count taxes and insurance as part of your monthly housing cost. This calculator subtracts monthly tax and insurance from your payment budget first, so only what remains funds principal and interest, which is what determines the loan size.
- Is the result the same as a pre-approval?
- No. This is an estimate based on the numbers you enter. A lender pre-approval also considers your credit score, employment history, cash reserves, and full documentation, and may give a higher or lower figure. Use this to plan, then get pre-approved.