Mortgage Affordability Calculator

Calculate how much house you can afford with our free mortgage affordability calculator. This mortgage affordability calculator determines maximum home price based on income and debts. Use this mortgage affordability calculator to understand required down payment and monthly costs. Our mortgage affordability calculator includes DTI analysis for realistic home buying budgets.

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Mortgage Affordability Calculator Inputs

$

Before-tax household income

$

Car loans, student loans, credit cards, etc.

20% avoids PMI, minimum typically 3-5%

Current mortgage rates vary by credit score

Annual rate (typically 0.5% - 2.5%)

$

Estimated homeowners insurance

$

If applicable (typically $100-$500)

Maximum Home Price

$0

Based on 28/36 DTI guidelines

Maximum Loan

$0

Down Payment

$0

Monthly Payment

$0

Back-End DTI

0.0%

Excellent DTI Ratios

Your debt-to-income ratios are within conventional lending standards. Most lenders prefer front-end DTI under 28% and back-end DTI under 36%.

Affordability Details

Annual Income$75,000
Monthly Income$6,250
Front-End DTI0.0%
Back-End DTI0.0%
Max Home Price$0

Monthly Payment Breakdown

Monthly Income Allocation

Understanding Your Mortgage Affordability Calculator Results

A mortgage affordability calculator determines how much house you can afford based on income, debts, and lending standards. This mortgage affordability calculator uses the 28/36 rule to calculate maximum home prices. Use this mortgage affordability calculator to understand DTI requirements and required down payments. Our mortgage affordability calculator helps you set realistic home buying budgets.

Key affordability metrics:

  • Front-End DTI (Housing Ratio): Housing payment ÷ gross monthly income. Lenders prefer under 28%
  • Back-End DTI (Total Debt Ratio): All debt payments ÷ gross monthly income. Lenders prefer under 36%
  • 28/36 Rule: Traditional guideline where housing costs shouldn't exceed 28% of income and total debt shouldn't exceed 36%
  • Down Payment: 20% avoids PMI; FHA loans allow as low as 3.5%

Using this mortgage affordability calculator: Enter your income and existing debts. The mortgage affordability calculator determines your maximum home price based on conventional lending standards. This mortgage affordability calculator includes all housing costs: principal, interest, taxes, and insurance (PITI). Remember that the mortgage affordability calculator shows maximums - budget conservatively for unexpected expenses and lifestyle needs.

Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.

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