Home Affordability Calculator

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Usage Disclaimer: This tool is intended exclusively for estimating affordability for a primary residence. It does not account for the higher interest rates, larger down payment requirements, or specific tax implications associated with second homes or investment properties. Please consult a qualified loan officer or financial advisor for a professional assessment.

Calculation Basis

Bank Approval

Real Budget

Financial Inputs

Annual Household Income (Gross)

Total income before taxes. Used by lenders.

Monthly Debts

Car payments, student loans, credit card minimums.

Available Down Payment

Mortgage & Costs

Interest Rate (%)

Loan Term

Closing Costs

Typically 2-5% of home price. Includes origination, title, prepaid tax.

Property Details

Property Tax (%)

Home Ins. (%)

Monthly HOA

PMI Rate (%)

Aggressiveness (DTI Ratio)

Results

Estimated Max Home Price $0

Loan Amount $0

Cash to Close $0

Income Multiple 0.0x

Monthly Payment Breakdown

$0 /mo

Principal & Interest
$0
Property Tax
$0
Home Insurance
$0
HOA Fees
$0
PMI
$0

Scenario Comparison

Saved Mortgage Scenarios
Price	Payment	Cash	Rate

Expert Analysis

Financial Glossary & Guide

Debt-to-Income Ratio (DTI): The percentage of your gross monthly income that goes to paying debts. Lenders use a "Front-End" ratio (Housing only) and "Back-End" ratio (Housing + Debts).
Closing Costs: Fees paid at the closing of a real estate transaction. This point of sale includes loan origination fees, title insurance, surveys, and prepaid property taxes.
Private Mortgage Insurance (PMI): Insurance protecting the lender if you stop making payments. Usually required if your down payment is less than 20% of the home's value.
Amortization: The process of paying off a debt over time through regular payments. An amortization schedule shows how each payment is split between principal and interest.

Gross vs. Net Income: Gross: Income before taxes. Lenders use this.
Net: Take-home pay after taxes. You should budget based on this.
The 28/36 Rule: A conservative guideline stating you shouldn't spend more than 28% of gross income on housing, and no more than 36% on total debt service.
HOA (Homeowners Association) Fees: Monthly fees paid by owners of certain types of properties (condos, townhomes, some subdivisions) to cover common area maintenance and amenities. These affect your DTI.
Total Affordability & Maintenance Risk: Being "house poor" means you can pay the mortgage but not the repairs. To minimize foreclosure risk, experts often suggest keeping the Home Price-to-After-Monthly-Debt-Payments Income multiple below 3.0x. This leaves financial room for expensive annual maintenance and unexpected repairs.