Home Affordability Calculator

How lenders decide what you can afford

Underwriters lean on two ratios. The housing ratio (28%) caps your total monthly housing cost — principal, interest, taxes, insurance, PMI and HOA — at 28% of gross monthly income. The total debt ratio (36%) caps housing plus car loans, student loans and card minimums at 36%. Your limit is whichever ratio bites first.

Example: on a $95,000 salary with $450 a month in other debts and $60,000 down, the housing ratio allows $2,217 a month. After estimated taxes and insurance, that supports a home price of about $357,000 at 6.5% over 30 years. Raise the debts to $800 a month and the 36% cap takes over — the affordable price falls by tens of thousands.

What the calculator cannot see (but your budget should)

• Closing costs of 2–5% of the price — estimate yours with the closing cost calculator.
• Maintenance — budget roughly 1% of the home's value per year.
• Rate reality — your actual rate depends heavily on credit score; a 1% rate change moves affordability more than a $5,000 raise.
• Cash after closing — lenders like reserves, and so will you when the water heater dies.

How to afford more house (safely)

Pay down revolving debt first: every $100 a month of card payments you eliminate frees roughly $15,000–$20,000 of home price. Saving a full 20% down payment removes PMI. And improving your credit score into the 740+ tier typically unlocks the best rate pricing. When you have a target price, check the exact payment in the mortgage payment calculator and see how close you are to a lender's green light with the pre-approval calculator. Read more in how much house can I afford?