House Affordability Calculator: How Much House Can You Afford?
Calculate how much house you can afford based on your income, debts, down payment, and other financial factors. Get a personalized estimate of your maximum home purchase price.
Category: Financial
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Frequently Asked Questions
How much house can I afford?
Financial experts typically recommend that your total housing costs (including mortgage, property taxes, insurance, and HOA fees) should not exceed 28% of your gross monthly income, while your total debt payments should not exceed 36% of your income.
What is the 28/36 rule?
The 28/36 rule is a common guideline used by lenders to determine how much house you can afford. It suggests that you should spend no more than 28% of your gross monthly income on housing expenses and no more than 36% on total debt service.
How does my down payment affect home affordability?
A larger down payment increases the home price you can afford in three ways: it reduces the loan amount needed, may help you qualify for better interest rates, and can eliminate private mortgage insurance (PMI) if you put down 20% or more.
What other costs should I consider when buying a home?
Beyond the mortgage payment, you should budget for: property taxes, homeowners insurance, possibly PMI, HOA fees (if applicable), utilities (water, electricity, gas, internet), maintenance, repairs, and closing costs when purchasing.
How do interest rates affect home affordability?
Interest rates significantly impact how much house you can afford. Higher rates increase your monthly payment and reduce your maximum affordable home price. For example, a 1% increase in interest rate can reduce your buying power by approximately 10%.