How Much House Can I Afford?

Find the purchase price range you should actually be shopping in.

Rent vs. Buy

Your Numbers

All figures are pre-tax where relevant.
$

Your pre-tax pay each month

$

Minimum monthly payments — not balances

$

Cash you can put toward the home (3.5%–20%+ of price)

%

Estimated rate for illustration

15 and 30 years are most common

%
$

Defaults to 0.70% if left blank

If you know the actual property taxes enter it here. Otherwise, .70% will be utilized to estimate.

$

Estimate for your area and home value

$

Leave at $0 if no HOA

mo

Tax + insurance escrow prepaids

Tiered by price

3% up to $250,000 · 2.75% · 2.6% · 2.5% · 2.35% above $550,000

Your Projected Purchase Price Range

Based on $8,500/mo income, $40,000 down, 6.75% for 30 yrs.
Shop between
$276,041–$455,507
(45% DTI)
Absolute max $488,293 (48% DTI)
Conservative
28% Total DTI
Debt-to-income ratio
$276,041
Loan$236,041
Est. total monthly$1,930/mo
Principal & interest$1,531
Property tax$161
Insurance$120
HOA$0
PMI$118
Down payment$40,000
Closing costs$7,591
Prepaids$2,283
First year homeowners insurance$1,440
Est. cash to close$49,874
Moderate
36% Total DTI
Debt-to-income ratio
$365,877
Loan$325,877
Est. total monthly$2,610/mo
Principal & interest$2,114
Property tax$213
Insurance$120
HOA$0
PMI$163
Down payment$40,000
Closing costs$9,513
Prepaids$2,440
First year homeowners insurance$1,440
Est. cash to close$51,953
Stretch
43% Total DTI
Debt-to-income ratio
$433,649
Loan$393,649
Est. total monthly$3,205/mo
Principal & interest$2,553
Property tax$253
Insurance$120
HOA$0
PMI$279
Down payment$40,000
Closing costs$11,275
Prepaids$2,559
First year homeowners insurance$1,440
Est. cash to close$53,834
Aggressive
45% Total DTI
Debt-to-income ratio
$455,507
Loan$415,507
Est. total monthly$3,375/mo
Principal & interest$2,695
Property tax$266
Insurance$120
HOA$0
PMI$294
Down payment$40,000
Closing costs$11,388
Prepaids$2,597
First year homeowners insurance$1,440
Est. cash to close$53,985
High
48% Total DTI
Debt-to-income ratio
$488,293
Loan$448,293
Est. total monthly$3,630/mo
Principal & interest$2,908
Property tax$285
Insurance$120
HOA$0
PMI$318
Down payment$40,000
Closing costs$12,207
Prepaids$2,655
First year homeowners insurance$1,440
Est. cash to close$54,862
Maximum
50% Total DTI
Debt-to-income ratio
$510,151
Loan$470,151
Est. total monthly$3,800/mo
Principal & interest$3,049
Property tax$298
Insurance$120
HOA$0
PMI$333
Down payment$40,000
Closing costs$12,754
Prepaids$2,693
First year homeowners insurance$1,440
Est. cash to close$55,447

How We Got Here

We take a target debt-to-income ratio, subtract your existing monthly debts, insurance, and HOA, then solve for the largest home price whose principal, interest, and property tax fit the remaining monthly budget.

Loan amount = (Price − Down payment). Property tax scales with price, so the higher the tax rate, the smaller the home your income supports.

Frequently Asked Questions

Want These Numbers Reviewed for Your Situation?

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Your information is used only to respond to your mortgage inquiry and is not sold. This is not a loan application and does not constitute any type of formal loan approval.

This is for educational and illustration purposes only. Does not constitute any kind of formal loan approval or intent to make a loan of any type. Cash to close, monthly payment, and purchase prices are pure, purely estimated and will vary based on the actual property selected. County taxes, homeowners insurance, lender fees, credit and down payment will impact MI rates along with the specific loan program you select. The illustrations herein are based on a conventional loan and conventional MI.

About closing costs: closing costs are estimated using a tiered percentage of the purchase price: 3% up to $250,000, 2.75% from $250,001 to $350,000, 2.6% from $350,001 to $450,000, 2.5% from $450,001 to $550,000, and 2.35% above $550,000. This is not an itemized quote. Actual closing costs vary by lender, title and escrow company, county, and property, and typically include origination and underwriting fees, appraisal, credit and flood reports, title insurance and settlement fees, recording fees and transfer taxes, plus prepaid interest and escrow deposits for property taxes and homeowners insurance. Seller credits, lender credits, and down payment assistance programs can offset part of them. Your official figures come from a Loan Estimate issued after a full application.