House Affordability Calculator
Find out how much house you can afford based on your income and financial situation.
How much house can I afford?
Lenders typically use the 28/36 rule: your housing costs shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36% of gross monthly income. This calculator helps determine your maximum affordable home price based on these industry-standard ratios.
What is included in the debt-to-income ratio?
The debt-to-income ratio (DTI) includes all monthly debt payments (mortgage, car loans, credit cards, student loans, personal loans) divided by gross monthly income. Lenders prefer DTI below 43%, with 36% or lower being ideal for conventional loans.
Should I save more than 20% down payment?
A 20% down payment helps avoid PMI (Private Mortgage Insurance) and reduces monthly payments. However, the minimum is often 3-5% for conventional loans, 3.5% for FHA loans, and 0% for VA loans. Larger down payments also strengthen your offer in competitive markets.
What other costs should I budget for?
Beyond the monthly mortgage payment, budget for property taxes (1-2% of home value annually), homeowners insurance ($1,000-$3,000/year), HOA fees if applicable, maintenance (1% of home value annually), and closing costs (2-5% of purchase price).