House Affordability Calculator
Determine how much house you can afford based on your income and financial situation.
Calculate Home Affordability
Include car payments, credit cards, student loans, etc.
About Home Affordability
This calculator uses the 28/36 rule, a standard guideline in mortgage lending. It suggests that housing costs should not exceed 28% of gross monthly income, and total debt should not exceed 36%.
The 28/36 Rule
- 28% Rule: Monthly housing costs ≤ 28% of gross monthly income
- 36% Rule: Total debt payments ≤ 36% of gross monthly income
- Housing costs include mortgage, insurance, taxes, and HOA fees
- Lenders use these ratios to assess mortgage applications
Additional Home Costs
- Property Taxes: Typically 0.5-2% of home value annually
- Home Insurance: Usually $800-$1,500+ per year
- HOA Fees: Varies widely, $100-$700+ per month
- Maintenance: Budget 1-2% of home value annually
- Utilities: Electricity, water, gas, internet, etc.
- PMI: Required if down payment less than 20%
Down Payment Options
- 20% Down: Avoids PMI, better rates
- 10-19% Down: Requires PMI, still good rates
- 5-9% Down: Higher PMI, higher rates
- 3-5% Down: FHA/conventional minimum, highest costs
- VA/USDA Loans: 0% down for qualified buyers
Tips for Home Buying
- Get pre-approved before house hunting
- Factor in closing costs (2-5% of purchase price)
- Save for emergencies beyond down payment
- Consider future income changes and expenses
- Don't max out your budget - leave financial cushion
- Research neighborhoods and future development plans