How Much House Can I Afford? — Home Affordability Calcula...

💰 Your Financial Details

Annual Gross Income ($)

Monthly Debts (car, student, credit cards) ($)

Down Payment Saved ($)

Interest Rate (%)

Loan Term

Property Tax Rate (%/year)

You Can Afford a Home Up To

$320,000

Based on 28% front-end DTI ratio

$1,980

Monthly Payment

28%

Debt-to-Income

$280,000

Loan Amount

🟢 Conservative

$260,000

🔵 Comfortable

$320,000

🟡 Stretch

$380,000

Monthly Payment Breakdown (Comfortable)

Principal & Interest$1,516

Property Tax$320

Home Insurance$117

PMI (if applicable)$0

Total Monthly$1,953

Your Gross Monthly Income$7,083

Housing Ratio (should be ≤ 28%)27.6%

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🎯 The 28/36 Rule

Housing costs ≤ 28% of gross income. Total debt ≤ 36%. Lenders use these ratios to qualify you. Staying below keeps you financially comfortable.

💰 Hidden Costs

Budget 1-2% of home value/year for maintenance. $300K home = $3,000-$6,000/year. Plus HOA fees, utilities, and yard care not included in mortgage.

📊 Down Payment Impact

20% down avoids PMI ($100-300/month). 10% down = smaller loan but adds PMI. 3-3.5% down (FHA) = lowest barrier but highest monthly cost.

📈 Room to Grow

Buy below your max budget. Leave room for income dips, rate increases, and life changes. A slightly smaller house with financial breathing room beats a dream home with stress.

How This Calculator Works

This home affordability calculator uses the 28/36 rule recommended by most financial advisors and lenders. It calculates three scenarios: Conservative (25% DTI), Comfortable (28% DTI), and Stretch (33% DTI). Your actual approval amount may vary based on credit score, employment history, and lender guidelines.

Factors That Determine How Much House You Can Afford

Gross income — Higher income allows higher monthly payments. Lenders verify with pay stubs and tax returns for the past 2 years
Existing monthly debts — Car payments, student loans, credit card minimums reduce your borrowing capacity. Pay off debts before applying for a mortgage
Down payment — Larger down payment means smaller loan, lower monthly payment, no PMI, and better interest rates
Credit score — 740+ gets the best rates. Every 20 points below 740 can cost you 0.125-0.25% higher rate
Interest rates — Even 0.5% difference changes your buying power by $25,000-$40,000
Property taxes — Vary dramatically by location. Texas: 1.8-2.5%. California: 0.7-1.1%. New York: 1.5-2.5%. Higher taxes reduce your home budget

🏠 How Much House Can I Afford?