Income Information

Annual Gross Income ($)

Monthly Debt Payments ($)

Down Payment ($)

Loan Terms

Interest Rate (%)

Loan Term (Years)

Debt-to-Income Ratio (%)

Additional Costs

Property Tax Rate (%)

Home Insurance ($/year)

PMI Rate (% if down payment < 20%)

About House Affordability Calculator

Our house affordability calculator helps you determine how much house you can realistically afford based on your income, existing debts, down payment, and loan terms. This comprehensive tool considers all major factors that lenders evaluate when approving mortgages, giving you a realistic picture of your home buying budget.

Key Factors in Home Affordability:

Debt-to-Income Ratio (DTI): The percentage of your gross monthly income that goes toward debt payments
Down Payment: The upfront cash payment that reduces your loan amount
Interest Rate: The annual percentage rate charged on your mortgage loan
Property Taxes: Annual taxes based on your home's assessed value
Home Insurance: Required insurance to protect your property
PMI (Private Mortgage Insurance): Required if down payment is less than 20%

DTI Ratio Guidelines:

28% (Conservative): Recommended for financial stability
31% (Moderate): Balanced approach for most buyers
36% (Standard): Commonly accepted by most lenders
43% (Maximum FHA): Highest ratio for FHA loans

What's Included in Monthly Payment:

Principal and Interest (P&I)
Property Taxes
Homeowners Insurance
Private Mortgage Insurance (PMI) if applicable
HOA fees (if applicable)

How to Use the House Affordability Calculator

1

Enter Your Income Information

Input your annual gross income, monthly debt payments, and available down payment amount.

2

Set Loan Terms

Choose your preferred interest rate, loan term (15-30 years), and debt-to-income ratio comfort level.

3

Add Additional Costs

Include property tax rate, home insurance costs, and PMI rate for accurate calculations.

4

Calculate and Review

Click calculate to see your maximum home price, loan amount, and detailed monthly payment breakdown.

💡 Home Buying Tips

📊 Improve Your DTI

Pay down existing debts before applying for a mortgage to qualify for a larger loan amount.

💰 Save for Down Payment

A 20% down payment eliminates PMI and reduces your monthly payment significantly.

🏦 Shop for Rates

Compare rates from multiple lenders - even 0.25% can save thousands over the loan term.

📋 Get Pre-approved

Pre-approval gives you a competitive edge and shows sellers you're a serious buyer.

House Affordability Calculator