How Much Home Can I Afford

The calculator on this page helps you understand what price home you can buy. One of the pieces of information this calculator uses is your maximum desired monthly housing payment. The maximum payment that you feel you can tolerate is not the only measure of how much house you can afford. The purchase price that the calculator recommends will also result in a monthly PITI payment that is below 33 % of your monthly gross income. (Learn more)

If you are a first time home buyer, an important part of the decision to buy a house is determining what price range of houses you can afford whose monthly payments fall comfortably within your monthly budget .

If you currently rent your home, to prevent a major change to your monthly expenses, a good starting point is to set your maximum monthly payment to a value that does not go too far beyond what you currently pay in rent. You should also try to keep your maximum monthly payment below 33% of your total gross income. 33% is a common Front-End Debt Ratio that banks use to determine if you can afford a home as they review your mortgage application.

Interview

Income and Rent

Monthly Gross Income:
$
Max Monthly House Pymt:
$
Potential Down Payment
$

Loan Details

Property Tax

Mortgage Calculator - How much can I borrow

You may be able to afford more than you think! Down payment assistance programs are available to you to help you buy a home that suits your needs in your preferred neighborhood. To learn more or fill out the Contact form on your left to have a HUD approved housing counselor contact you to take the next step to home ownership .

THIS SUMMARY PROVIDES ESTIMATES ONLY . Before making any home or loan purchase decision, you should obtain the advice of a professional financial advisor who is aware of your individual circumstances. Please refer to the Terms Of Use for a complete description of the proper use of this information.

Understanding Your Results

Home Purchase Price: This is the recommended purchase price for a home that you may afford based on your income, down payment amount, loan interest rate, property taxes, and the maximum monthly housing payment that you have set. This purchase price was chosen because the total monthly PITI payments on a home with this price would be less than your maximum desired monthly housing payment.

Monthly PITI Payment: This is the total Principal, Interest, Taxes, and Insurance payments that you will make if you purchase a home with the recommended purchase price. Notice that this payment is at or below the maximum monthly housing payment that you have set and at or below 33% of your gross monthly income.

Primary Loan Amount: This is the loan amount that you will have to get from a bank. This amount combined with your down payment will equal your home purchase price.