Home Affordability

How much house can you afford?

Banks approve loans based on your debt-to-income ratio. This calculator shows what they'll offer, and what you can actually live comfortably with.

Income & Debts
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Purchase Details
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Please fill in your income, down payment, and mortgage rate.

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Compare rates and get pre-approved. Shopping multiple lenders can save tens of thousands over the life of a loan.

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For educational purposes only. Not financial advice. Actual loan approval depends on credit score, employment history, and lender criteria. Consult a mortgage professional before making home buying decisions.

Figuring out how much house you can actually afford is more complicated than most people expect. Lenders look at your debt-to-income ratio, your down payment, your credit score, and current mortgage rates. And the number they approve you for isn't always the number you should spend.

A good rule of thumb is to keep your total housing costs under 28% of your gross monthly income. That includes your mortgage payment, property taxes, and insurance. Going above that threshold doesn't mean you can't afford the house; it just means less breathing room if something changes.

Common Questions

What is a debt-to-income ratio and why does it matter?
Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. Most lenders want to see a DTI below 43% to approve a mortgage. The lower it is, the better your chances of getting approved and the better rate you'll likely qualify for.
How much should I put down on a house?
20% is the traditional target because it eliminates private mortgage insurance (PMI), which adds to your monthly payment. But plenty of people buy with less; FHA loans allow as little as 3.5% down. The tradeoff is a higher monthly payment and extra PMI costs until you build enough equity.
How does interest rate affect how much house I can afford?
Significantly. A 1% increase in mortgage rate on a $400,000 loan adds roughly $250 to your monthly payment. That same $250 could have qualified you for about $50,000 more house at a lower rate. Running the numbers at a few different rates is worth doing before you start shopping.
What's the difference between pre-qualified and pre-approved?
Pre-qualification is a quick estimate based on self-reported information; it doesn't carry much weight with sellers. Pre-approval means a lender has verified your income, assets, and credit, and is a real commitment to lend up to a certain amount. In a competitive market pre-approval is essentially required.