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Your Home Buying Power
Maximum Home Price
$0
Based on 28/36 rule
Max Loan Amount
$0
Monthly Payment (P&I)
$0
Front-End DTI
0%
Back-End DTI
0%
Total Interest Paid
$0
Est. Property Tax/mo
$0
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How We Calculate Your Affordability
This calculator uses the 28/36 rule, the standard guideline used by most mortgage lenders. Your total housing payment (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income, and your total monthly debts should not exceed 36%.
What Counts as Monthly Debt?
Include car payments, student loan payments, minimum credit card payments, personal loans, child support, and any other recurring monthly obligations. Do not include utilities, groceries, or other living expenses.
Down Payment Impact
A larger down payment increases your buying power and reduces your monthly payment. Putting 20% down also eliminates private mortgage insurance (PMI), which typically costs 0.5-1% of the loan amount annually. On a $300,000 loan, that saves $125-250/month.
Frequently Asked Questions
How much house can I afford on a $100K salary?
On a $100K salary with no other debts, you can typically afford a home priced between $350,000 and $450,000, depending on your down payment, interest rate, and location. Lenders generally want your total housing payment under 28% of gross monthly income.
What is the 28/36 rule for mortgages?
The 28/36 rule says your housing costs should not exceed 28% of gross monthly income (front-end ratio), and total debt payments should not exceed 36% of gross monthly income (back-end ratio). Some lenders allow up to 43% back-end DTI for qualified borrowers.
How much down payment do I need to buy a house?
Conventional loans typically require 3-20% down. FHA loans require 3.5% minimum. VA and USDA loans may require 0% down. A 20% down payment eliminates private mortgage insurance (PMI), saving $100-300/month on a typical loan.
Does my DTI ratio affect mortgage approval?
Yes. Most lenders require a back-end DTI ratio of 43% or lower. FHA loans allow up to 50% in some cases. Lower DTI ratios get better interest rates and higher approval odds. Paying down existing debts before applying can significantly increase your buying power.
Should I include property taxes and insurance in my calculation?
Yes. Your total monthly housing payment includes principal, interest, property taxes, and homeowner's insurance (PITI). Property taxes average 1-2% of home value annually, and insurance costs $1,000-3,000/year depending on location and coverage.
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