SmartCalcs

Mortgage Affordability Calculator

Find out exactly how much house you can afford based on your income and debts.

Financial Profile

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Before taxes.

$

Car loans, student loans, credit card minimums.

$

Mortgage Details

$

Maximum Home Price

$356,876

Max Monthly Payment: $2,333

Recommended Home Price (Conservative)

$322,726

Max Monthly Payment Breakdown

Principal & Interest$1,876
Property Taxes$357
Homeowners Insurance$100
Total Monthly Payment (PITI)$2,333

Debt-to-Income (DTI) Ratios

Front-End DTI (Housing Only)28.0% (Max 28%)
Back-End DTI (Total Debts)34.0% (Max 36%)

* This calculator provides an estimate based on standard lending guidelines (28/36 rule). Actual loan approval depends on your credit score, lender requirements, and other factors.

Understanding Debt-to-Income (DTI)

When you apply for a mortgage, lenders look closely at your Debt-to-Income (DTI) ratio to ensure you can comfortably make your monthly payments. There are two types of DTI:

Front-End DTI (Housing Ratio)

This is the percentage of your gross income that goes toward housing costs (Principal, Interest, Taxes, Insurance, and HOA).

Standard Limit: 28%

Back-End DTI (Total Debt Ratio)

This includes your housing costs PLUS all other monthly debt obligations like car loans, student loans, and credit card minimums.

Standard Limit: 36% to 43%

Frequently Asked Questions

Q. What is the 28/36 rule?

The 28/36 rule is a common guideline used by lenders. It states that your maximum household expenses should not exceed 28% of your gross monthly income (Front-End DTI), and your total debt payments (including the mortgage, credit cards, auto loans) should not exceed 36% of your gross income (Back-End DTI).

Q. Does this calculator guarantee I will get a loan?

No. This calculator provides an estimate based on standard income and debt ratios. Lenders will also heavily weigh your credit score, employment history, and the specific loan program (FHA, VA, Conventional) you are applying for.

Q. Why is the recommended price lower than the maximum price?

Lenders will often approve you for the absolute maximum you can theoretically afford on paper. However, being "house poor" (spending all your money on your mortgage) is risky. The recommended price uses a more conservative ratio to ensure you still have money left over for savings, emergencies, and living your life.