Mortgage Affordability Calculator

Calculate the affordable home price based on income and debts, following the 28/36 DTI rule.

What is a Mortgage Affordability Calculator?

Find out how much house you can afford based on income, debts, and down payment. Uses the 28/36 DTI rule.

How to Use

Using the mortgage affordability calculator is simple:

Enter your values in the input fields
Click the calculate button
View the result instantly

Tips

Double-check your inputs for accurate results
This tool is for estimation - consult a professional for important decisions
Save your results for future reference

Frequently Asked Questions

What debt-to-income (DTI) ratios do lenders use?+

Most lenders prefer the 28/36 rule - housing costs at no more than 28% of gross income and total debt (including housing) at no more than 36%. Some loans allow DTI up to 43-50%, but they carry more risk.

Should I budget for home maintenance?+

Yes. The rule of thumb is 1-3% of the home's value per year. A $300,000 home should have $3,000-$9,000 budgeted annually for maintenance - HVAC, roof, plumbing, and more. This is not in the mortgage payment but is essential.

What is the 28/36 rule?+

The 28/36 rule suggests your housing expenses (principal, interest, taxes, insurance) should not exceed 28% of your monthly gross income, and total debt payments (housing + car loans + credit cards, etc.) should not exceed 36%.

How do property taxes and insurance affect affordability?+

They have a significant impact. A $125,000 home pays $1,250 per year in property tax in a 1% state, versus $3,125 in a 2.5% state. This changes what you can afford. Always include taxes and insurance before calculating your home price.