How Much House Can I Afford?
This flow is built for the “what can I actually buy?” question—not a maximum stretch number, but a payment you can hold if rates, taxes, or repairs tick up.
Quick answer
Combine gross income, monthly debt payments, down payment, and a target housing ratio. The calculator helps you translate that into an approximate price range at today’s rate assumptions.
For a related estimate, see 20 Percent Down Calculator.
Explore further: Biweekly Mortgage Calculator · Closing Cost Calculator
How to use this calculator
- Enter income and recurring debts: Include car loans, minimum card payments, and other obligations lenders count in DTI—not optional subscriptions.
- Pick a conservative housing ratio: Many buyers aim below the lender maximum to leave margin for savings, repairs, and lifestyle.
- Sync rate, term, and down payment: A lower rate or larger down payment raises your buying power; a shorter term lowers total interest but raises payment.
How lenders think about it (simplified)
Underwriters weigh debt-to-income: housing payment plus debts vs gross income. Taxes, insurance, and HOA count toward that housing payment—so “affordable price” is not just P&I.
Explore further: Debt To Income Calculator · Down Payment Calculator
Real-world example
- Example: $9,500/mo gross, $650/mo other debt, 20% down: If you target ~28% of gross for housing (~$2,660/mo) and back out taxes/insurance placeholders, you might land near a mid-$300s–$400s range at 6.5% / 30-year—highly sensitive to local taxes (illustrative).
Explore further: Home Affordability With Taxes · Home Loan Calculator
What this means
Affordability is payment-first: most households target housing near 28% of gross; once taxes and insurance sit inside that bucket, the same income buys less house—drop price or down payment, not expectations.
FAQ
Why is my “affordable” price lower than Zillow says?
Listings often show P&I only. Taxes, insurance, HOA, and PMI change the monthly—and what you can afford.
Should I use gross or net income?
Lenders use gross for ratios, but you should sanity-check against your net budget and emergency fund.
Is this an official loan estimate?
No. It is an educational model. Lenders issue formal estimates after underwriting; use this to ballpark payments and compare scenarios.
Why does my lender’s payment differ?
Escrow timing, PMI rules, local tax assessments, and rounding can differ. Align inputs with your Loan Estimate line items when comparing.