Home Affordability Calculator
Find out how much house you can afford based on your income, debts, and the 28/36 rule.
How Much House Can I Afford?
Enter your financial details to calculate your maximum home price
Understanding Home Affordability
The 28/36 Rule Explained
The 28/36 rule is a guideline lenders use to assess affordability. The front-end ratio (28%) limits housing costs to 28% of gross income. The back-end ratio (36%) limits total debt payments including housing to 36% of income. FHA loans may allow higher ratios.
What's Included in Housing Costs?
- Principal: The amount that reduces your loan balance
- Interest: Cost of borrowing money
- Property Tax: Annual tax based on home value
- Insurance: Homeowner's insurance coverage
- PMI: Required if down payment is less than 20%
Factors That Affect Affordability
- Your gross annual income and job stability
- Current monthly debt obligations
- Credit score and interest rate
- Down payment amount available
- Local property tax and insurance rates
Tips for First-Time Buyers
- Save at least 20% down to avoid PMI
- Keep 3-6 months expenses as emergency fund
- Factor in closing costs (2-5% of price)
- Get pre-approved before house hunting
- Don't max out your approved amount