Use this calculator to determine how much home
you can afford. Lenders will look at your income
versus your debt to determine how much additional
debt you can safely take on for a new home. Increasing
your income and/or reducing your debt and/or increasing
your cash down payment improves your ability to
purchase a more expensive home.
How It Works
This calculator follows the same affordability guidelines
used by most lenders. We have assumed a 28% house payment-to-income
ratio. However, if your other debts (car loans, alimony,
credit cards, insurance, etc.) cause your total debt-to-income
ratio to exceed 36%, you may have problems getting approved
for a loan.
This calculator assumes a conventional 30-year fixed
mortgage.
If your down payment is less than 20% of your home
purchase price, you may be required to have private
mortgage insurance (PMI) which
will increase your monthly payment by approximately
$50-$75.
The results of this calculator are to be used for informational
purposes only and should not be used as financial advice.
