Maximum home price you can afford
$437,890
At the edge of the DTI limit
Home Affordability Calculator: Can I Afford This House?
Calculate your maximum purchasing power or test a specific property listing with true monthly cost and DTI analysis.
Your Annual Income
Your total annual income before taxes
Car loans, student loans, credit cards, etc.
Loan Details
%
Current average: 6.5-7.5%
%
Charged on the value of the home, not on your income
What is DTI?
Debt-to-Income compares your monthly debt payments with your gross monthly income.
- Front-end DTI
- 28% or less · housing costs only
- Back-end DTI
- 36% or less · all debts including housing
- Stretch limit
- 43% or less · some lenders, at a higher cost
A higher DTI means more financial stress. Plan against the recommended figure, not the maximum.
Recommended (comfortable) home price
$396,910
Leaves room for savings and emergencies
Maximum loan amount
$357,890
After a $80,000 deposit
Monthly payment breakdown
- Principal & interest
- $2,003
- Property tax
- $397
- Insurance
- $100
- HOA fees
- $0
- Total monthly
- $2,500
DTI analysis
- Front-end DTI
- 25%
- Back-end DTI
- 30% · Acceptable
- At the maximum price
- 33%
The front-end housing limit is what caps the price.
Down payment
$80,000
18.3% of the maximum price
Under 20% - expect to pay PMI.
Closing costs estimate
$13,137
About 3% of the purchase price
Appraisal, inspection, title insurance and lender fees. Varies by lender and location - and it is cash needed on day one, not financed.
DTI breakdown
Where your monthly gross income goes at the recommended price
- Housing costs25%
- Other debts5%
- Left over70%
- Housing costs$2,500
- Other debts$500
- Left over$7,000
Affordability range
The conservative floor, the recommended price, and what a stretched lender might approve
Monthly payment composition
Principal, tax, insurance and HOA at the recommended price
Income vs expenses
What is left each month after housing and debts - the amount a missed payment hurts
What if you...
Move a slider and the recommended price updates immediately
$0
$0$20,000,000
$0
$0$100,000
0.0%
0%4%
Recommended now
$396,910
With these changes
$396,910
+$0
Ways to increase affordability
- Increase the down payment
- Pay off existing debts first
- Improve your credit score for a better rate
- Increase income, or add a second earner
- Consider a longer term to lower the payment
Benefits of a 20% down payment
- No private mortgage insurance (PMI)
- A lower monthly payment
- Better rates more often
- Equity from day one
DTI warning signs
- Above 43% is genuinely risky
- Leave room for emergencies
- Do not max out your budget
- Budget for future costs - a car, a child