🏡 Home Affordability Calculator
Determine how much house you can afford based on your income, monthly debts, and available down payment
Home Affordability Calculator
Calculate how much house you can afford based on your income, debts, and financial situation.
Financial Information
Include student loans, car payments, credit cards, etc.
Understanding Home Affordability
The 28/36 Rule
- • Front-end ratio: Housing costs ≤ 28% of gross income
- • Back-end ratio: Total debt payments ≤ 36% of gross income
- • These are guidelines - actual approval depends on credit, assets, and loan type
- • FHA loans may allow higher ratios (up to 43% back-end)
Key Factors That Impact Affordability
- • Credit Score: Higher scores get better rates
- • Down Payment: 20%+ avoids PMI
- • Debt-to-Income: Lower DTI = more buying power
- • Interest Rates: Even 0.5% makes a big difference
- • Location: Property taxes and insurance vary
Important Reminders
- • This calculator provides estimates - actual loan approval depends on many factors
- • Budget for maintenance (1-3% of home value annually)
- • Keep an emergency fund separate from your down payment
- • Get pre-approved before house hunting for accurate numbers
- • Consider all homeownership costs: utilities, repairs, upgrades
How to Use
1. Enter your gross annual income
2. Input your monthly debt payments (credit cards, loans, etc.)
3. Set your available down payment amount
4. Choose your preferred loan term and interest rate
5. Review your maximum affordable home price
6. See recommended price ranges based on different DTI ratios
Features
✓ Maximum home price calculation
✓ Debt-to-income ratio analysis (28/36 rule)
✓ Monthly payment breakdown
✓ Down payment impact analysis
✓ Conservative and aggressive affordability ranges
✓ Closing cost estimates