Home Affordability Calculator
Find out how much house you can afford based on your income, existing debts, down payment, and current interest rates. This calculator uses the debt-to-income (DTI) ratio that lenders use to determine your maximum home price and monthly mortgage payment.
Home Affordability Calculator
FAQ
What is the DTI ratio and why does it matter?
The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward debt payments. Most lenders require a DTI of 43% or less for mortgage approval. A lower DTI means you can qualify for a larger loan.
Does this include property taxes and insurance?
This calculator focuses on the maximum loan amount based on DTI limits. Your actual affordable price may be lower once property taxes, homeowner's insurance, HOA fees, and PMI are factored into your monthly payment.
How much should I put as a down payment?
While 20% is the traditional recommendation to avoid PMI, many loans allow 3-5% down. A larger down payment reduces your loan amount and monthly payment, increasing the home price you can afford.