Home Affordability Calculator

A small and a big house sitting next to each other
Have you ever wondered how expensive of house you could afford?

This home affordability calculator is designed to let borrowers know how much of a mortgage loan they can afford at their current wages and outstanding debt.

By filling out one’s monthly income (or combined monthly income for couples), size of a down payment, total outstanding debts (other loans, cell phone bills, utilities, insurance bills, etc.), expected interest rate, and term (duration), borrowers will be given an idea of what kind of mortgage loan they can afford.

The property tax and homeowner’s insurance fields are optional, but should be filled out for a more accurate home affordability calculation.

The national average property tax on a 30-year home loan is around $3,500 per year. Similarly, the national average cost of homeowner’s insurance is nearly $500 per year. If you do not know what the taxes and insurance costs are for the property you’re interested in, feel free to input these national averages so that you can get a more accurate depiction of your affordability level.

These calculations are based on a 36 percent debt-to-income ratio since most lenders will not allow borrowers to spend more than 36 percent of their monthly income (minus recurring bills) on a home mortgage loan.

By completing the fields on this mortgage affordability calculator, borrowers can better budget their finances and approach lenders with an educated and informed prediction of what they can afford. If you find you can afford a mortgage at a certain level, feel free to complete the home loan application that appears at the bottom of your results.

Home Loan Affordability Calculator
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These calculations are based on a 36% debt-to-income ratio since most lenders will not allow borrowers to spend more than 36% of their monthly income less bills on a home mortgage loan.