Mortgage Affordability Calculator
Find out how much home you can afford based on your income, debts, and down payment. Get personalized recommendations for your home buying journey.
💰 Income & Employment
Before taxes and deductions
Bonuses, investments, etc.
💳 Monthly Debt Payments
🏦 Loan Details
🏡 Additional Costs
Annual rate as % of home value
📌 Quick Tips
- • Most lenders prefer DTI ratios under 36%
- • 20% down payment avoids PMI costs
- • Include all recurring monthly debts
- • Consider future income changes
- • Budget for maintenance (1% annually)
📊 Understanding the Numbers
28/36 Rule
Traditional lending guideline: housing costs ≤28% of income, total debt ≤36% of income.
PMI (Private Mortgage Insurance)
Required when down payment <20%. Typically 0.5-1% of loan amount annually.
Pre-Approval vs. Pre-Qualification
Pre-approval involves credit check and documentation; pre-qualification is an estimate.
🎯 Improve Your Affordability
Pay Down Existing Debt
Lower monthly obligations increase buying power
Increase Down Payment
Reduces loan amount and may eliminate PMI
Improve Credit Score
Better rates mean lower monthly payments
Consider Different Loan Types
FHA, VA, or USDA loans may have different requirements
Frequently Asked Questions
How accurate is this calculator?
This calculator provides estimates based on standard lending guidelines. Actual approval amounts depend on your complete financial profile, credit score, and lender-specific criteria.
What's not included in the calculation?
Utilities, maintenance, repairs, and moving costs aren't included. Budget an additional 1-3% of home value annually for maintenance and unexpected repairs.
Should I borrow the maximum amount?
Not necessarily. Consider your lifestyle, savings goals, and comfort level with debt. Many financial advisors recommend staying below the maximum to maintain flexibility.