Home Affordability Calculator
How Much House Can I Afford
Calculate the maximum home price you can afford using the 28% front-end DTI rule
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Formula
Max Monthly Payment = Monthly Income × 28% (front-end DTI). Max Loan = Payment × [(1+r)^n - 1] / [r × (1+r)^n]. Max Home Price = Max Loan + Down Payment.
Frequently Asked Questions
What is the 28% rule for home affordability?
The 28% rule states that your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income. This is the front-end DTI ratio. Combined with the 36% back-end rule (total debts), it helps determine a comfortable home price.
How much house can I afford on a $100,000 salary?
Using the 28% rule with a $100K salary, your max monthly housing payment is about $2,333. At a 6.5% rate with 20% down on a 30-year loan, you could afford roughly $450,000-$470,000 depending on debts, taxes, and insurance.
What factors affect how much home I can afford?
Key factors include gross income, existing debt payments, down payment amount, interest rate, property taxes, homeowners insurance, PMI (if less than 20% down), and HOA fees. Credit score also indirectly affects affordability through interest rates.
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