Home Affordability Calculator
Find out how much house you can afford based on your income, debts, down payment, and current market conditions.
Maximum Home Price
Based on your financial situation
Monthly Payment Breakdown
Affordability Metrics
Home Price Ranges
Conservative
25% of monthly income for housing
Recommended
28% of monthly income for housing
Aggressive
35% of monthly income for housing
Understanding Home Affordability
Determining how much house you can afford involves more than just looking at your income. Lenders use debt-to-income ratios and other factors to qualify you for a mortgage.
Key Factors in Home Affordability
- Debt-to-Income Ratio (DTI): The percentage of your monthly income that goes toward debt payments.
- Front-End DTI: Housing costs as a percentage of income (typically =28%).
- Back-End DTI: All debt payments as a percentage of income (typically =36%).
- Down Payment: Larger down payments reduce monthly payments and may improve loan terms.
- Credit Score: Better credit scores often qualify you for lower interest rates.
- Interest Rates: Current market rates significantly impact monthly payments.
The 28/36 Rule
Many lenders follow the 28/36 rule:
- 28%: No more than 28% of your gross monthly income should go toward housing costs.
- 36%: No more than 36% of your gross monthly income should go toward all debt payments.
Important: This calculator provides estimates based on standard lending guidelines. Actual affordability depends on your credit score, employment stability, assets, and lender requirements. Consult with a mortgage professional for personalized advice.