House Affordability Calculator
Determine how much house you can afford based on your income, debts, and financial situation.
Loan & Costs
You Can Afford
Conservative
$0
$0/mo
Comfortable
$0
$0/mo
Stretch
$0
$0/mo
Debt-to-Income Ratios (Comfortable Scenario)
Front-End Ratio (Housing)
0%
Recommended max: 28%
Back-End Ratio (Total Debt)
0%
Recommended max: 36%
Monthly Payment Breakdown (Comfortable)
Principal & Interest
$0
Property Tax
$0
Insurance
$0
PMI
$0
HOA
$0
Total Monthly
$0
Frequently Asked Questions
The 28/36 rule is a guideline lenders use to determine mortgage affordability. The front-end ratio (28%) states your monthly housing costs should not exceed 28% of your gross monthly income. The back-end ratio (36%) states your total monthly debt payments including housing should not exceed 36% of your gross monthly income.
A common rule of thumb is that you can afford a home 2.5 to 3 times your annual gross income. However, this varies based on your debt levels, down payment, interest rates, and local property taxes and insurance costs. Use this calculator for a more accurate estimate based on your specific situation.
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5% to 1% of the loan amount annually and protects the lender if you default. Once you reach 20% equity, you can usually request to remove PMI.
A monthly mortgage payment typically includes Principal (paying down the loan balance), Interest (cost of borrowing), Property Taxes, Homeowner's Insurance, and potentially PMI and HOA fees. This is often referred to as PITI (Principal, Interest, Taxes, Insurance).