Inputs

$

Before taxes

$

Car, student loans, credit cards

$
%

Results

Max Home Price

$410,718

Conservative Estimate$369,646
Max Loan Amount$350,718
Max Monthly Payment$2,333
More details
Income Rule Limit$2,333/mo
Debt Rule Limit$2,500/mo

ℹ️ The limiting factor is the 28% housing expense rule. Lender approval depends on credit score, employment, and other factors.

How to Use

  1. 1Enter your annual gross income (before taxes; use combined income for joint applications).
  2. 2Add all existing monthly debt payments: car loans, student loans, minimum credit card payments.
  3. 3Enter how much you have saved for a down payment.
  4. 4Use your current mortgage rate quote or today's average.
  5. 5Your max home price and maximum monthly payment will appear instantly.

Frequently Asked Questions

What is the 28/36 rule?+

Lenders use the 28/36 rule as a guideline: your housing costs should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. Staying within these limits helps ensure loan approval and financial stability.

Should I buy the maximum I can afford?+

Not necessarily. Buying at your maximum leaves no buffer for repairs, job changes, or rate adjustments. Many financial advisors recommend buying at 80–90% of your maximum to maintain financial flexibility.

Does my credit score affect affordability?+

Absolutely. A higher credit score (740+) unlocks lower interest rates, which significantly increases your buying power. Improving your score by 50 points could lower your rate by 0.25–0.5%, adding tens of thousands in purchasing power.

What about property taxes and insurance?+

The 28% housing expense rule includes PITI: principal, interest, taxes, and insurance. If you estimate $500/month for taxes and insurance, reduce your monthly principal+interest limit accordingly.

Can I get approved with higher DTI?+

Some loan programs (FHA allows up to 43–50% DTI with compensating factors, VA has no hard limit) may approve higher debt ratios. However, staying within the 36% guideline gives you the most loan options at the best rates.

This calculator is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making real estate or financial decisions.