Mortgage Affordability Calculator

Calculate how much house you can afford based on your income, down payment, and monthly expenses. Get detailed mortgage payment breakdowns and affordability analysis.

Income & Financing
Property Costs

Affordability Analysis

Max Monthly Housing Budget

$2,100

Based on 36% DTI target

Estimated Max Home Price

$307,733

Within your budget

Estimated Loan Amount

$267,733

After $40,000 down payment

Monthly Payment Breakdown

Principal & Interest:$1,692.25
Property Tax:$307.73
Insurance:$100
HOA:$0
Total Monthly:$2,099.99

Loan Summary

Total Interest:$341,478.69
Payoff Date:11/1/2055
What This Means:

Your maximum affordable home price of $307,733 is based on your income, debts, and target debt-to-income ratio. This ensures your monthly housing costs remain manageable while accounting for property taxes, insurance, and HOA fees.

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Disclaimer: Educational estimates only; not financial advice. Consult with a qualified mortgage professional for personalized guidance.

Understanding Home Affordability

Home affordability isn't just about the purchase price. It includes your monthly mortgage payment, property taxes, insurance, HOA fees, and other housing-related costs. Our calculator helps you determine a realistic budget based on your financial situation.

Key Factors in Home Affordability:

Debt-to-Income Ratio (DTI)

Lenders typically prefer a DTI of 36% or lower:

  • Front-end DTI: Housing costs / gross income
  • Back-end DTI: All debts / gross income
  • Lower DTI = better loan terms

Down Payment Impact

Larger down payments provide benefits:

  • Lower monthly payments
  • Better interest rates
  • Avoid PMI (Private Mortgage Insurance)
  • More equity from day one

Monthly Payment Components:

PITI Breakdown:

  • Principal & Interest (P&I): Your loan payment
  • Property Tax: Annual tax divided by 12 months
  • Insurance: Homeowner's insurance premium
  • HOA Fees: Homeowners association dues (if applicable)

Total Monthly Payment = P&I + Property Tax + Insurance + HOA

Affordability Guidelines:

Conservative (28% Rule)

Housing costs should not exceed 28% of gross monthly income.

Standard (36% Rule)

Total debt payments should not exceed 36% of gross monthly income.

Aggressive (43% Rule)

Maximum DTI for qualified mortgages under CFPB guidelines.

Tips for Better Affordability:

  • Save for a larger down payment to reduce monthly payments
  • Pay down existing debts to improve your DTI ratio
  • Improve your credit score for better interest rates
  • Consider different loan terms (15-year vs 30-year)
  • Factor in all costs including maintenance and utilities
  • Build an emergency fund before buying a home

Loan Types and Their Impact:

Conventional Loans

  • 5-20% down payment required
  • PMI required if down payment < 20%
  • Best rates for qualified borrowers
  • Flexible terms (10, 15, 20, 30 years)

FHA Loans

  • 3.5% down payment minimum
  • Lower credit score requirements
  • MIP (Mortgage Insurance Premium) required
  • Good for first-time homebuyers

Additional Costs to Consider:

  • Closing costs: 2-5% of home price (inspection, appraisal, title, etc.)
  • Moving expenses: Professional movers, truck rental, deposits
  • Immediate repairs: Appliances, flooring, painting, etc.
  • Ongoing maintenance: 1-3% of home value annually
  • Utilities: Higher costs for larger homes
  • Furniture and decor: Especially for first-time buyers