How much house can I afford?
Your monthly payment$0
- Monthly payment
- Down payment & closing costs
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|Property taxes ?||$0|
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|Homeowners insurance ?||$0|
Down payment & closing costs
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How we calculate how much house you can afford
We calculate how much house you can afford using a few different factors. This calculator provides the best possible estimate of the maximum borrowing power you have based on these factors. It is not intended to be exact.
Income and debts – First we factor in your income and monthly debt payments. These monthly payments include car payments and credit card, or student loan debt.
Property taxes – Taxes are included, and are adjusted based on the state you are purchasing in.
Credit Score – One of the biggest factors in determining how much of a home you can afford is your credit score. Your interest rate is directly tired to your credit. The higher your score the lower your interest rate. You can adjust the calculator to factor in your credit score, which will adjust the interest rate accordingly.
Debt-to-income ratio – The amount of monthly payments you have compared to your monthly income is called your DTI, or debt-to-income ratio. The maximum DTI most mortgages require is 41%. In the chart you can adjust the DTI ratio to see how much house you can afford with different DTI ratios.
Down Payment – This home affordability calculator will automatically adjust your borrowing power and monthly payments based on the amount of your down payment.
PMI – If you put less than 20% down on a home, you will be required to have mortgage insurance. PMI is added automatically if you enter a down payment of under 20%.