How much house can you afford? Uses the 28/36 rule
This house affordability calculator uses the standard 28/36 rule to determine the maximum home price you can afford. It factors in your income, monthly debts, down payment, interest rate, property taxes, and insurance for a realistic budget. Beyond just a maximum price, this tool provides a detailed monthly breakdown showing exactly how much goes toward principal, interest, taxes, insurance, and PMI. Understanding these components helps you set realistic expectations and avoid becoming house poor.
The calculator applies the 28% front-end ratio (housing costs vs income) and 36% back-end ratio (total debt vs income), taking the lower of the two limits.
The 28/36 rule states that no more than 28% of your gross monthly income should go to housing costs, and no more than 36% should go to total debt payments including your mortgage.
Yes, a higher credit score qualifies you for lower interest rates, which increases your purchasing power. It can also affect PMI requirements and loan approval.
The 28/36 rule states that housing costs should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. Lenders use these ratios to determine how much you can borrow.
Yes, the calculator automatically adds PMI when your down payment is less than 20% of the home price. PMI typically costs 0.3% to 1.5% of the loan amount annually.
A high DTI reduces your borrowing power because more of your income is committed to existing debts. Most lenders prefer a DTI below 36%, though some allow up to 43-50% with strong compensating factors.
Beyond your mortgage, budget for property taxes (typically 0.5-2.5% of home value), homeowners insurance ($800-$2,000/year), maintenance (1% of home value annually), utilities, and HOA fees if applicable.