Home Affordability Calculator
See how much house you can afford based on your income, debts, and down payment using the 28/36 rule.
Maximum Affordable Home Price
$325,291
Based on the 28% front-end DTI rule · $2,100.00/month
Maximum Monthly Payment Breakdown
| Principal & Interest | $1,676.82 |
| Property Tax | $298.18 |
| Home Insurance | $125.00 |
| Total Monthly | $2,100.00 |
Loan Details
Home Price
$325,291
Down Payment
$60,000
Loan Amount
$265,291
Conservative vs Recommended vs Stretch
| Conservative25% DTI | Recommended28% DTI | Stretch33% DTI | |
|---|---|---|---|
| Max Home Price | $294,202 | $325,291 | $377,105 |
| Loan Amount | $234,202 | $265,291 | $317,105 |
| Monthly Payment | $1,875.00 | $2,100.00 | $2,475.00 |
| Max Monthly Housing | $1,875.00 | $2,100.00 | $2,475.00 |
Tips for Increasing Affordability
- ✓ Pay down existing debts to improve your back-end DTI ratio and qualify for more.
- ✓ A larger down payment directly increases your max home price and may eliminate PMI.
- ✓ Improve your credit score to qualify for lower interest rates, which boosts affordability significantly.
- ✓ Look into first-time homebuyer programs that offer down payment assistance or reduced rates.
- ✓ Consider a 30-year loan for lower monthly payments, even if total interest is higher.
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Frequently Asked Questions
What is the 28/36 rule?
The 28/36 rule is a guideline lenders use: your monthly housing costs should not exceed 28% of your gross monthly income (front-end DTI), and your total monthly debt payments should not exceed 36% (back-end DTI). This calculator uses the 28% front-end rule as the "Recommended" scenario.
How much should I put down?
While 20% down avoids PMI and gives you the best rates, many loan programs accept as little as 3–5% down. FHA loans require just 3.5%. However, a smaller down payment means higher monthly costs and more total interest paid.
What counts as "monthly debt"?
Include minimum payments on car loans, student loans, credit cards, personal loans, child support, and any other recurring debt obligations. Do not include utilities, groceries, or other living expenses.
Should I buy the maximum I can afford?
Financial advisors generally recommend the "Conservative" approach (25% DTI or less) to leave room for savings, emergencies, and lifestyle expenses. Just because you qualify for a certain amount doesn't mean you should borrow that much.