🏠 House Affordability Calculator

The calculator uses the 28/36 rule: your mortgage payment should not exceed 28% of your gross monthly income, and your total debt payments (including mortgage) should not exceed 36% of your gross monthly income. It calculates the maximum loan amount based on these ratios and adds your down payment to determine the affordable house price.

The 28/36 rule is a common guideline used by lenders: 28% of your gross monthly income can go toward housing costs (mortgage, taxes, insurance), and 36% can go toward total debt payments (housing plus other debts like car loans, credit cards, student loans).

Traditional mortgages typically require 20% down to avoid private mortgage insurance (PMI). However, many programs allow lower down payments: FHA loans require 3.5%, VA loans offer 0% down for eligible veterans, and conventional loans may accept as little as 3% down.

Key factors include: your income, credit score, existing debts, down payment amount, interest rates, loan term, property taxes, homeowners insurance, and whether you'll pay PMI (private mortgage insurance).

Yes! Beyond the mortgage payment, budget for property taxes, homeowners insurance, PMI (if down payment <20%), HOA fees (if applicable), maintenance (1-2% of home value annually), utilities, and repairs.

Pre-qualification is a preliminary assessment based on self-reported information. Pre-approval involves a thorough credit check and verification of financial documents, making it a stronger indication of what you can afford and more credible to sellers.

Higher credit scores typically qualify for lower interest rates, which can significantly increase your purchasing power. A difference of just 0.5% in interest rate can affect your affordable home price by tens of thousands of dollars over the life of a loan.