Mortgage Affordability Calculator
Discover how much house you can afford based on your income, debts, and down payment
Enter Your Financial Details
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How Much House Can You Afford?
Understanding mortgage affordability helps you make smart homebuying decisions and avoid overextending your finances
The 28/36 Rule
Lenders typically prefer that your housing costs don’t exceed 28% of your gross monthly income, and your total debt payments stay under 36% of your income.
Down Payment Impact
A larger down payment reduces your loan amount, monthly payments, and may help you avoid private mortgage insurance (PMI). Aim for 20% to get the best terms.
Interest Rate Effects
Even small changes in interest rates significantly impact affordability. A 1% rate increase can reduce your buying power by 10-12%.
Hidden Homeownership Costs
Budget for maintenance (1-3% of home value annually), utilities, HOA fees, and potential repairs beyond your mortgage payment.
Tips to Increase Your Buying Power
Improve Your Credit Score
A higher credit score can qualify you for better interest rates, potentially saving thousands over the loan term.
Pay Down Existing Debt
Reducing monthly debt payments improves your debt-to-income ratio and increases your mortgage qualification amount.
Consider Different Loan Terms
While 30-year loans have lower payments, 15-year loans offer significant interest savings over time.
Shop Multiple Lenders
Compare rates from at least 3-5 lenders. Rate differences of 0.25% can save thousands over your loan term.
Ready to Take the Next Step?
Use our other calculators to get a complete picture of your home financing options