Home Affordability Calculator
Find out how much house you can afford based on your income and debts. Get a realistic estimate of your maximum home price and monthly payments.
Car loans, student loans, credit cards, etc.
Enter your financial details to see how much home you can afford.
How It Works
Lenders typically use the 28/36 rule: your housing costs shouldn't exceed 28% of gross monthly income (front-end DTI), and total debt payments shouldn't exceed 36% (back-end DTI). This calculator finds the maximum home price that keeps you within these limits.
Frequently Asked Questions
What is PMI?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default. PMI typically costs 0.5-1% of the loan annually and can be removed once you reach 20% equity.
Should I buy the max I can afford?
Not necessarily. The maximum is what lenders might approve, not what's comfortable for your lifestyle. Consider future expenses, savings goals, and leaving room for unexpected costs. Many experts suggest spending less than the maximum.
What other costs should I plan for?
Budget for closing costs (2-5% of home price), moving expenses, immediate repairs, furniture, and ongoing maintenance (1-2% of home value annually). Also consider HOA fees if applicable.