What rules of thumb are used?

Many lenders look at front-end (housing/tax/insurance vs income) and back-end (all debts vs income) ratios; the tool mirrors common DTI heuristics.

If there is a field for it, yes. Otherwise budget PMI separately when down payment < 20%.

Why is my bank’s number different?

Credit score, reserves, loan program, and exact taxes change what you qualify for.

Should I borrow the max?

Not necessarily—leave room for savings, repairs, and lifestyle costs.

Rules differ; this is aimed at owner-occupied scenarios unless stated.

Estimates run locally; we don’t receive your finances.

Mortgage Affordability Calculator

Estimate a rough home price based on income, debts, down payment, and interest rate.

Annual Income ($)Monthly Debts ($)Interest Rate (APR %)

Down Payment ($)Property Tax (% of price / yr)Insurance (monthly $)

No mortgage affordable with current inputs.

Max housing budget (28/36 rules): $0/mo. Estimated taxes + insurance: $0/mo. That leaves $0/mo for the mortgage — not enough to finance additional principal. Try increasing income, reducing debts, lowering the interest rate, lowering taxes/insurance, or increasing the down payment.

Estimated Home Price

Estimated Mortgage Principal

Estimated Monthly Breakdown (PITI)

Mortgage

Taxes

Insurance

Total (PITI)

This is a rough estimate using 28/36 rules and a 30-year term.

Informational only; verify critical results independently.

How to use

Gather gross monthly income and minimum monthly debt payments (cards, loans, child support as applicable).
Enter expected interest rate, loan term, and down payment percent or amount.
Add estimates for property tax, insurance, and HOA if the tool asks—housing cost is more than P&I.
Read the rough maximum home price or loan amount the model suggests.
Adjust income or debts to see how sensitive affordability is to a raise or paying off a card.
Take the output to a loan officer for a true pre-approval—this is not a commitment to lend.

Examples

Income $120k, debts $500/mo, 5% APR, 20% down
What home price with $90k income and 10% down?
Dual income $180k combined, $800/mo debts, 15% down
Self-employed with variable income—try conservative income entries
Higher rate stress test: same inputs at +1% APR
Compare 28% front-end vs 36% back-end limits mentally with the tool’s notes

FAQ

What rules of thumb are used?: Many lenders look at front-end (housing/tax/insurance vs income) and back-end (all debts vs income) ratios; the tool mirrors common DTI heuristics.
Does it include PMI?: If there is a field for it, yes. Otherwise budget PMI separately when down payment < 20%.
Why is my bank’s number different?: Credit score, reserves, loan program, and exact taxes change what you qualify for.
Should I borrow the max?: Not necessarily—leave room for savings, repairs, and lifestyle costs.
Investment property?: Rules differ; this is aimed at owner-occupied scenarios unless stated.
Privacy?: Estimates run locally; we don’t receive your finances.

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Last updated: 2025-09-15

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