Mortgage Affordability Calculator
Affordability is not a single number from a lender—it is the payment you can sustain after taxes, savings, and life happen. This page helps you model that tradeoff with concrete inputs.
Quick answer
Set income, debts, down payment, and housing cost assumptions. You will see how sensitive your max price is to rate changes and to taxes/insurance.
For a related estimate, see 20 Percent Down Calculator.
Explore further: Biweekly Mortgage Calculator · Closing Cost Calculator
How to use this calculator
- Enter stable monthly obligations: Debts that appear on a credit report matter most for lender math.
- Layer full housing cost: Include taxes, insurance, and HOA in the payment you call “affordable.”
- Run a rate +1% stress test: If the payment breaks your budget at +1%, consider a smaller price or larger down payment.
What drives your monthly number
Principal and interest follow your loan amount, rate, and term. Taxes, insurance, and HOA (if any) sit on top as recurring housing costs. Changing one input shifts the total—rates move the P&I curve fastest; taxes and HOA change the “all-in” payment even when the loan is fixed.
Explore further: Debt To Income Calculator · Down Payment Calculator
Real-world example
- Example: holding payment near $2,400/mo all-in: At 6.75% / 30-year, every ~$15,000 of extra loan is roughly +$100/mo P&I—so small price changes move what you can carry (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
Is the lender’s max payment the same as “affordable”?
Often no. Lenders use guidelines; you should reserve margin for maintenance, moving costs, and savings.
Does PMI change affordability?
Yes. Below 20% down on many conventional loans, PMI adds to the monthly until equity builds.
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.