Mortgage Affordability Calculator
Determine how much house you can afford based on your income and expenses.
Calculate Mortgage Affordability
Your Results:
Enter your details to see results.
How to Use This Calculator
This calculator helps you determine how much house you can afford based on your income, expenses, and down payment. Follow these steps:
- Step 1: Enter your annual income (e.g., $60,000).
- Step 2: Input your monthly debt payments (e.g., $500).
- Step 3: Add your down payment amount (e.g., $20,000).
- Step 4: Specify the annual interest rate and loan term.
- Step 5: Click "Calculate" to see your results.
Use this tool to set realistic expectations for homebuying and avoid overextending your finances. It’s especially helpful for first-time buyers or those refinancing their mortgage.
Frequently Asked Questions (FAQs)
Q1: What is the 28/36 rule?
The 28/36 rule states that housing costs should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%.
Q2: Can I afford a home if I have existing debt?
Yes, but your total debt payments (including the mortgage) should not exceed 36% of your gross monthly income.
Q3: How does a down payment affect affordability?
A larger down payment reduces the loan amount, lowering your monthly payments and increasing your affordability range.
Q4: What if I don’t know the exact interest rate?
Use an estimated rate based on current market trends. You can always update the calculator with the actual rate later.
Q5: Can I include property taxes and insurance?
No, this calculator focuses on the loan amount. For a full picture, add property taxes and insurance to your monthly housing costs separately.