House Affordability Calculator
Determine how much house you can afford based on your income, debts, and down payment. Get realistic estimates for your home buying budget and monthly payments.
Your Financial Information
Your total annual income before taxes
Car loans, credit cards, student loans, etc.
Cash available for down payment
Current mortgage rates (check with lenders)
Varies by location (national average: 1.1%)
Typical range: $800-$2,000+ annually
Homeowners association fees if applicable
Affordability Results
Debt-to-Income Ratios
Monthly Payment Breakdown
Cash Needed at Closing
Affordability Analysis
What If Scenarios
Understanding Home Affordability
The 28/36 Rule
Lenders typically use the 28/36 rule to determine affordability:
- • 28% - Maximum housing costs (PITI)
- • 36% - Maximum total debt payments
- • Based on gross monthly income
- • Conservative guideline for financial stability
PITI Explained
Your monthly housing payment includes:
- • Principal - Loan balance repayment
- • Interest - Cost of borrowing
- • Taxes - Property taxes
- • Insurance - Homeowner's insurance
Additional Costs
Don't forget these homeownership expenses:
- • PMI - If down payment < 20%
- • HOA fees - Community amenities
- • Maintenance - 1-3% of home value annually
- • Utilities - Higher than renting
Down Payment Strategies
20% Down Payment Benefits
- • No private mortgage insurance (PMI)
- • Lower monthly payments
- • More equity from day one
- • Better loan terms and rates
- • Stronger offers in competitive markets
Low Down Payment Options
- • FHA loans: 3.5% down minimum
- • VA loans: 0% down for veterans
- • USDA loans: 0% down in rural areas
- • Conventional: 3-5% down options
- • First-time buyer programs available
Building Your Down Payment
- • Set up automatic savings transfers
- • Use high-yield savings accounts
- • Consider gifts from family members
- • Explore down payment assistance programs
- • Review 401(k) first-time buyer options
Timing Your Purchase
- • Monitor interest rate trends
- • Research local market conditions
- • Get pre-approved before shopping
- • Consider seasonal market patterns
- • Factor in job stability and income growth
Important Considerations
This is an estimate only. Actual loan approval depends on credit score, employment history, debt-to-income ratios, and other factors reviewed by lenders.
Hidden Costs: Factor in moving expenses, immediate repairs, furniture, increased utilities, and ongoing maintenance when budgeting for homeownership.
Emergency Fund: Maintain 3-6 months of expenses in savings after your home purchase for unexpected repairs or job changes.
Professional Guidance: Consult with mortgage lenders, real estate agents, and financial advisors for personalized advice based on your specific situation.
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