Home Affordability Calculator

Estimate how much home you may be able to afford based on your income, monthly debts, loan type, down payment and estimated housing expenses.

1. Household Income

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Income before taxes and other deductions.
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$
Examples may include documented bonuses, commissions, retirement or other qualifying income.

2. Monthly Debt Payments

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$
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$
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Generally, include debts that appear on your credit report or are required monthly obligations. Everyday expenses such as groceries, utilities, cell phones and entertainment are normally not included in DTI.

3. Loan & Financing

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Advanced Loan Assumptions
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Limits housing expenses as a percentage of gross monthly income.
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Includes the proposed housing payment plus existing monthly debts.
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Used for programs that may finance an upfront mortgage or guarantee fee.
These ratios are planning assumptions only. Actual allowable ratios can vary based on credit, automated underwriting results, reserves, compensating factors and lender requirements.

4. Estimated Property Expenses

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Annual property taxes as a percentage of estimated home value.
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Enter 0 if none applies. The calculator may adjust this when the loan type changes.

Estimated Affordability

Based on the information entered above
Estimated Maximum Home Price
$0
Estimated Loan Amount $0
Estimated Down Payment $0
Estimated Total DTI 0%
Principal & Interest $0
Property Taxes $0
Homeowners Insurance $0
Mortgage Insurance / Program Fee $0
HOA / Condo Dues $0
Estimated Total Monthly Housing Payment $0
Existing Monthly Debt $0

Understanding the Terms

What is DTI?

DTI stands for Debt-to-Income Ratio. It compares your required monthly debt payments to your gross monthly income.

For example, if your gross monthly income is $10,000 and your housing payment plus other qualifying debts total $4,000 per month, your total DTI would be 40%.

What is gross income?

Gross income is income before taxes, insurance, retirement contributions and other payroll deductions are taken out.

What is the housing or front-end ratio?

The housing ratio compares your proposed monthly housing expense to your gross monthly income. Housing expenses generally include principal, interest, property taxes, homeowners insurance, mortgage insurance and HOA or condo dues.

What is the total or back-end DTI ratio?

The total DTI ratio includes both your proposed housing payment and other qualifying monthly debts such as car loans, credit-card minimum payments, student loans and other installment debt.

What are principal and interest?

Principal is the amount borrowed. Interest is the cost charged by the lender for borrowing the money. Together they make up the basic mortgage payment before taxes, insurance and other housing expenses.

What is PMI or mortgage insurance?

Mortgage insurance may apply to certain loans, particularly when the borrower makes a smaller down payment. Conventional mortgage insurance is commonly called PMI. FHA and USDA loans have their own mortgage-insurance or guarantee-fee structures.

What is an upfront loan fee?

Some government-backed mortgage programs may charge an upfront mortgage insurance, funding or guarantee fee. In some cases that fee can be financed into the mortgage instead of being paid entirely at closing.

Why can my actual approval be different?

Mortgage qualification can depend on many factors beyond DTI, including credit history, credit score, employment history, income documentation, cash reserves, property type, loan amount and automated underwriting results.

Important: This calculator is provided for educational and planning purposes only. It is not a loan approval, prequalification or commitment to lend. Actual mortgage eligibility, interest rates, payments, insurance, taxes, loan limits and underwriting requirements vary by borrower, property, lender and loan program. Consult a licensed mortgage professional for financing information.

Ready for the Next Step?

Use the tools below to take a closer look at your estimated monthly payment and potential buyer closing costs.