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Find out how much house you can afford based on your income, debts, and down payment. Get a personalized estimate that factors in property taxes, insurance, and your debt-to-income ratio.
Plan your financial future with our suite of mortgage calculators
The amount you can afford depends on your income, debts, down payment, interest rate, and property taxes. A common guideline is the 28/36 rule: spend no more than 28% of gross income on housing and 36% on total debt. Our calculator analyzes all these factors for a personalized estimate.
The 28/36 rule suggests your housing costs (including mortgage, taxes, and insurance) should not exceed 28% of your gross monthly income, and your total debt payments should stay below 36%. Lenders use these ratios to determine loan eligibility.
Your debt-to-income (DTI) ratio compares your monthly debt payments to your gross income. Lower DTI means you can afford a larger mortgage. Most lenders prefer DTI below 43%, with some programs allowing up to 50% for qualified borrowers.
While 20% down avoids PMI and gives you more equity, many loan programs allow 3-10% down. FHA loans require just 3.5%, and VA/USDA loans offer 0% down. Consider your savings, closing costs, and emergency fund when deciding.
A mortgage payment typically includes principal (loan repayment), interest, property taxes, and homeowners insurance - often called PITI. You may also have PMI, HOA fees, or flood insurance depending on your situation.