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How Much House Can I Afford?

How Much House Can I Afford?
Houses
Gross Annual Income Monthly Debt Payments
(Car payments, credit cards,
student loan payments, etc.)
Funds Available for a
Down Payment
$ $ $
Annual
Property Taxes
% Annual Property
Insurance
%
Interest Rate % Loan Term (In Years)
Front End Ratio % Back End Ratio %
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How to use the Home Affordability Calculator

Use this home affordability calculator to get an estimate of the property price you can afford based upon your income and debt profile.

Prequalifying for a mortgage is simple, and is intended to give you a working idea of how much mortgage you can borrow. Combined this amount with your down payment, and you'll answer your question of “how much house can I afford?” This is not the same as being preapproved for a loan, which involves placing an application and providing documentation to a lender.  

Remember -- this is just a guide. Your final amount will vary depending on a number of factors, especially interest rate, which will be based on your credit score. When you're ready, a lender can give you a more exacting figure.

To produce estimates, both Annual Property Taxes and Insurance are expressed here as percentages. Generally speaking, and depending upon your location, they will generally range from about 0.5% to about 2.5% for Taxes, and 0.5% to 1% or so for Insurance.

Front End and Back End debt ratios are to determine how much of your monthly gross income can be used for your mortgage debt (front end) and how much can be used to satisfy all your regular obligations (back end). The 28% and 36% ratios are standard in the mortgage world, but lenders may have other combinations available, such as 33%/38%.

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