Calculator
Affordability Calculator
Find out how much house you can afford based on your financial situation.
Income & Debt
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Your total yearly income before taxes$
Car loans, student loans, credit cards, etc.Down Payment & Loan
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%
Additional Costs
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Maximum Home Price$429,159you can afford
Max Loan Amount$369,159
Down Payment$60,000
Estimated Monthly Payment$2,738
Principal & Interest$2,333
Property Tax$292
Insurance$113
Debt-to-Income Analysis
Front-End DTI (Housing)32.9%
Back-End DTI (Total)38.9%
Lenders typically prefer front-end DTI under 28% and back-end under 36%. Your calculation is limited by housing costs.
Understanding Affordability
Lenders use two main ratios to determine how much you can borrow:
- Front-End Ratio (Housing Ratio): Your housing costs (mortgage, taxes, insurance, HOA) should not exceed 28% of your gross monthly income.
- Back-End Ratio (Debt-to-Income): Your total debt (housing + car loans, student loans, credit cards) should not exceed 36% of your gross monthly income.
Factors That Affect Affordability
- Income: Higher income means higher buying power.
- Debt: Existing debt reduces how much you can borrow.
- Down Payment: Larger down payment = more home you can afford.
- Interest Rate: Lower rates mean lower payments, increasing affordability.
- Credit Score: Better scores often qualify for better rates.