Home Affordability Calculator: Discover How Much House
You Can Afford
Whether you’re buying your first home or planning to upgrade to a new one, it’s important to understand what fits within your budget. Our home affordability calculator makes it easy—just enter your income, debts, and other financial details, and we’ll help you estimate how much house you can comfortably afford.
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Payment information is not a determination of eligibility. This calculator is provided for estimation purposes only, and is based on your self-reported information and aggregate national averages.
What You’ll Need for the Calculator
To estimate your mortgage payment, be ready to enter the following details:
Annual Household Income: Provide your total income before taxes and deductions for all members of your household.
Monthly Debt Payments: Add up the minimum monthly payments for all your existing debts—this includes credit cards, student loans, personal loans, and more. This amount helps determine your back-end debt-to-income (DTI) ratio. A lower DTI means you may have more financial flexibility.
Down Payment: Enter the amount you plan to put down upfront when purchasing a home. A larger down payment can help reduce your interest rate. For conventional loans, putting down at least 20% of the purchase price allows you to avoid private mortgage insurance (PMI). Your down payment amount can also influence which loan programs you may qualify for..
Interest Rate: Enter the interest rate you expect for your mortgage. You can use the current market rate or a specific rate if you’ve been preapproved or locked in a loan offer.
Take The First Step To Buying a Home
How the Calculator Works
The calculator uses the details you provide to estimate the maximum home price you can afford, based on a default debt-to-income (DTI) ratio of 36%. You can adjust the slider to see how changing the portion of your monthly income allocated to a mortgage affects your budget. This helps you explore whether a higher or lower monthly payment would be financially comfortable for you.
How Income Affects Affordability
No matter how you earn—whether through a salary, hourly wages, commissions, investments, or self-employment—your annual gross income (income before taxes and deductions) is key to determining how much home you can afford.
Lenders typically require income verification for the past two years to ensure your earnings are stable and reliable. They divide your gross annual income by 12 to calculate your monthly gross income, which is then used to figure out a mortgage payment that fits within standard affordability guidelines.
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