Homeowner tool
Home Affordability Calculator
Work backwards from your income and debts to a realistic price range — and see how the debt-to-income limit you choose changes the answer.
Your finances
- Loan amount—
- Down payment as a percent—
- Principal and interest—
- Estimated property taxes—
- Estimated insurance—
- Total housing budget per month—
At this price your down payment is under 20%, so a conventional loan would include private mortgage insurance until you reach 20% equity. That cost is not included above.
Estimates are for educational planning only and are not an offer of credit, a quote, or financial advice. Actual figures depend on your lender, credit profile, loan program, location, and current market conditions. Property tax rates, insurance premiums, and mortgage insurance costs vary widely. Confirm all numbers with a licensed lender before making a decision. This tool applies your chosen debt-to-income limit to gross income. Lenders also evaluate credit score, employment history, reserves, and property type.
How this calculator works
- Your maximum total monthly debt is gross monthly income multiplied by the debt-to-income limit you select.
- Existing debt payments, HOA dues, and insurance are subtracted to find the amount available for principal, interest, and taxes.
- That amount is converted to a purchase price using the loan payment factor for your rate and term, plus your down payment.
- Lenders will often approve more than this figure. Approval is a ceiling, not a recommendation.
Frequently asked questions
Is this the same as a preapproval?
No. This is an estimate for planning. A preapproval involves a credit pull and document verification by a lender.
What debt-to-income ratio should I use?
36 percent is the conservative traditional guideline. Many conventional lenders allow up to 45 percent, and some programs go higher. Using a lower figure produces a more comfortable payment.
Disclaimer. Estimates are for educational planning only and are not an offer of credit, a quote, or financial advice. Actual figures depend on your lender, credit profile, loan program, location, and current market conditions. Property tax rates, insurance premiums, and mortgage insurance costs vary widely. Confirm all numbers with a licensed lender before making a decision.