Mortgage Affordability Calculator

Find your maximum home purchase price based on your income, debts, and the lender's DTI limits.

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Before taxes — all income sources

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Car payments, student loans, credit card minimums

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Varies widely by state/county

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Max Home Price

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Affordable purchase

Max Monthly Payment

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PITI (all-in)

Loan Amount

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Price minus down payment

Housing DTI

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% of gross income

Monthly Payment Breakdown (at max price)

28/36 Rule of Thumb

The traditional guideline: spend no more than 28% of gross monthly income on housing (PITI) and no more than 36% on all debt. Modern lenders are more flexible (FHA allows 31%/43%, some conventional loans go to 50% back-end), but the 28/36 rule keeps you financially comfortable.

True Cost of Homeownership

  • PITI: Principal + Interest + Taxes + Insurance
  • PMI: ~0.7-1.5%/year if down payment under 20%
  • HOA fees: $0-600+/month depending on community
  • Maintenance: Budget 1-2% of home value per year
  • Closing costs: 2-5% of loan amount (upfront)

Down Payment Options

  • 20%+: No PMI, best rates, lowest monthly payment
  • 10-19%: PMI required, good loan options
  • 3.5-9.9%: FHA loans (3.5% min), conventional (3% min)
  • 0%: VA loans (veterans) and USDA (rural areas)

Related Guides

Related Data

Compare mortgage lenders and approval rates at PlainLender. See property tax rates by county at PlainPropertyTax. Check rental markets as a fallback at PlainRent.

Disclaimer: Affordability depends on your full financial picture, credit score, and lender. Get pre-approved to know your actual budget.

Frequently Asked Questions

How much house can I afford?
A general rule: keep housing costs (mortgage, taxes, insurance) under 28% of gross income (front-end DTI). Your total debt payments should stay under 36-43% (back-end DTI). Use both calculations — the stricter one limits your budget. Lenders will approve based on their DTI limits, which may let you borrow more than is comfortable.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% on a conventional loan. Cost: 0.5-1.5% of the loan amount per year, added to monthly payments. You can request PMI removal when your equity reaches 20% (by paying down principal or home appreciation).
How does my credit score affect my mortgage rate?
Your credit score significantly affects your mortgage rate. With a 760+ score, you'll get the best rates. A 640 score might add 1-2% to your rate. On a $350,000 loan at 30 years, a 1% rate difference costs about $70,000 more in total interest. Improving your score before applying can save thousands.
Should I get pre-approved before house hunting?
Yes. Pre-approval shows sellers you're serious and gives you a firm budget. It requires a hard credit pull and full income documentation. Pre-qualification is a softer estimate without verification. Most sellers and agents won't take offers seriously without a pre-approval letter.

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