Home Affordability Calculator
Determine the maximum home price you can afford based on your income, debts, and down payment.
Maximum Home Price
$425,000
Monthly Payment Breakdown:
Principal & Interest:
$1,632
Property Tax:
$425
Home Insurance:
$106
Total Housing Payment:
$2,163
Debt-to-Income Ratio
36%
Good
Housing-to-Income Ratio
32%
Good
Quick Summary:
Loan Amount:
$365,000
Monthly Debt (excluding housing):
$900
Total Monthly Obligations:
$3,063
Debt-to-Income Guidelines
≤36%
Excellent
You're in great shape! Lenders will view you as a low-risk borrower with excellent debt management.
37-42%
Good
Still acceptable to most lenders. You may qualify but could benefit from paying down some debt first.
≥43%
Too High
May have difficulty qualifying. Consider increasing income or reducing debt before applying.
Tips to Improve Affordability
Increase Your Income
- • Ask for a raise or promotion
- • Take on freelance or part-time work
- • Include co-borrower income
- • Count bonus/commission income (2-year history)
Reduce Your Debts
- • Pay off credit card balances
- • Consolidate high-interest debt
- • Pay off car loans early
- • Avoid taking on new debt
Save for a Larger Down Payment
- • Reduces loan amount needed
- • May eliminate PMI requirement
- • Lowers monthly payments
- • Shows financial discipline to lenders
Improve Your Credit Score
- • Pay all bills on time
- • Keep credit card balances low
- • Don't close old credit accounts
- • Check credit report for errors
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