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How Much House Can I Afford?

To determine how much house you can afford, use this home affordability calculator to get an estimate of the property price you can afford based upon your income and debt profile. Generally, lenders cap the maximum monthly housing allowance (including taxes and insurance) to lesser of Front End Ratio (28% usually) and Back End Ratio (36% usually). 

Prequalifying for a mortgage is simple, and is intended to give you a working idea of how much mortgage you can afford. Combine 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.

How to calculate how much house you can afford

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%.

Home Affordability Calculator

L O A D I N G

Please enter gross annual income greater than 0

Please enter monthly debt payments greater than 0

(Car payments, credit cards, student loan payments, etc.)

Please enter down payments greater than 0

Please enter interest rate greater than 0

Please enter loan term greater than 0

Please enter property tax greater than 0

Please enter property insurance greater than 0

Please enter front end ratio greater than 0

Please enter back end ratio greater than 0

Home value you can afford
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Down Payment
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Down Payment percent
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Principal + Interest payment
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Taxes and Insurance
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Monthly PMI
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Detailed calculations
Generally, lenders cap the maximum monthly housing allowance (including taxes and insurance) to lesser of Front End Ratio (28% usually) and Back End Ratio (36% usually).
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Monthly Gross Income
Front End Ratio
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Back End Ratio
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Monthly Debts
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Percent of Gross Income
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Maximum Available for Mortgage Payments
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