Mortgage Affordability Calculator
Calculate how much house you can afford based on your income, debts, and down payment. See your maximum home price, monthly payment breakdown, and different affordability scenarios.
Income & Debts
Loan Details
Other Costs
Maximum Home Price
Based on 28% front-end / 36% back-end DTI
⚠️ PMI Required
With 17.6% down, you'll need PMI (~$117/month) until you reach 20% equity.
Monthly Payment Breakdown
| Principal & Interest | $1,867 | 80% |
| Property Tax | $341 | 15% |
| Home Insurance | $125 | 5% |
| PMI (estimated) | $117 | 5% |
| Total | $2,450 |
Affordability Scenarios
| Approach | DTI Limits | Max Price | Max Payment |
|---|---|---|---|
| Conservative | 25% / 33% | $308,003 | $2,083 |
| Moderate | 28% / 36% | $340,674 | $2,333 |
| Aggressive | 31% / 43% | $373,306 | $2,583 |
Affordability by Income
| Annual Income | Max Home Price |
|---|---|
| $75,000 | $264,494 |
| $100,000 | $340,717 |
| $125,000 | $416,939 |
| $150,000 | $493,162 |
| $200,000 | $645,607 |
| $250,000 | $798,052 |
Affordability Guidelines
The 28/36 Rule
Lenders typically want housing costs under 28% of gross income (front-end) and total debt under 36% (back-end). Some lenders allow up to 43% back-end for qualified borrowers.
Don't Max Out
Just because you qualify for a certain amount doesn't mean you should borrow it. Leave room for savings, emergencies, and lifestyle. Consider the "conservative" scenario.
Hidden Costs
Beyond the mortgage, budget for maintenance (1-2% of home value/year), utilities, furnishing, and unexpected repairs. These can add $500-1000+/month to your housing costs.
Frequently Asked Questions
How much house can I afford?
Quick rules of thumb:
- 2.5-3x income: Conservative estimate
- 3-4x income: With low debts and good rate
- 28% rule: Housing under 28% of gross income
Use this calculator for a personalized estimate based on your situation.
What is the 28/36 rule?
| Ratio | Limit | Includes |
|---|---|---|
| Front-end (Housing) | 28% | Mortgage, taxes, insurance, HOA |
| Back-end (Total Debt) | 36% | Housing + all other debts |
Some lenders allow up to 43% back-end for qualified borrowers.
What's included in a mortgage payment?
PITI:
- P - Principal: Paying down the loan
- I - Interest: Cost of borrowing
- T - Taxes: Property taxes (escrowed)
- I - Insurance: Homeowners insurance
May also include PMI and HOA fees.
Should I max out my budget?
No. Just because you qualify doesn't mean you should. Consider:
- Maintenance costs (1-2% of home value/year)
- Utilities and furnishing
- Emergency fund and retirement savings
- Lifestyle and flexibility
Many advisors recommend staying 10-20% below your maximum.