How Much House Can You Afford?
It pays to shop around.
Find out what home price is within your budget
As you shop for your dream home, remember to factor in all the hidden costs that come with a house, and be sure to explore your options. You don’t want to be in over your head before the ink even dries on your closing contract.
Can you really afford a ready-made, brand new home, or should you focus more on finding a fixer-upper? If you do go with an older home, will higher insurance premiums actually offset potentially lower mortgage payments?
Enter your income and down payment amounts below to calculate how much house you actually can afford based on your monthly debt, mortgage rate, tax payments and more.
Enter Household Income/Mortgage Information
Gross Annual Income$Downpayment Amount$Monthly Debt$Mortgage Rate%Annual Property Taxes$Annual Homeowner Insurance$Calculate
Review Mortgage Payments
Minimum House Price$Loan Amount$Monthly Mortgage Payment$Taxes & Homeowners Insurance$Total Monthly Payment*$Reset
Home Affordability Calculator
We use the standard guidelines used by most lenders in order to find your affordable home price. For example, we used a debt-to-income ratio of 36 percent as well as a 28 percent payment-to-income ratio for the conservative estimate and 28 percent of the aggressive estimate. Savings needs are not calculated here.
We have assumed a 30-year mortgage term, annual property taxes of $3500 and a $804/year home insurance premium (based on the National Average). This calculation does not include private mortgage insurance (PMI) which you may be required to pay if you put down less than 20% of the purchase price as a down payment.