How Much Home Can I Afford?
Calculate your maximum home price based on your income, debts, and savings. Understand your debt-to-income ratio and buying power.
How Much Home Can I Afford?
Know Your Buying Power Before You Shop
Most lenders use the 28/36 rule: your housing costs shouldn't exceed 28% of gross income, and total debts shouldn't exceed 36%. Adjust the DTI slider below to see how different limits affect your buying power.
Your Financial Profile
You Can Afford Up To
$374,332
Based on 36% DTI at 6.5% for 30 years
Your Price Range
$318,182
Comfortable
$374,332
Target
$411,765
Stretch
Debt-to-Income Ratio
of your gross income goes to debt
Monthly Budget
Budget Reality Check
Your mortgage payment is just the start. Before committing to a home price, make sure you can comfortably cover these additional monthly costs:
A good rule of thumb: if your total housing costs (mortgage + all the above) exceed 35-40% of your take-home pay, you may be stretching too thin.
Did you know? The FBI's Internet Crime Complaint Center (IC3) reports that Americans lost over $12.5 billion to internet crime in 2023, with real estate and rental fraud among the top categories. Always verify wire instructions by phone before sending closing funds.
Hidden Costs Beyond the Mortgage
Your mortgage payment is just the beginning. Real homeownership costs include ongoing expenses many first-time buyers don't budget for. Factor these into your affordability calculation. Click any card for detailed guidance.
Maintenance & Repairs
1-2% of home value/year
For a $350K home, budget $3,500-$7,000 annually. HVAC replacement: $5,000-$10,000. Roof: $8,000-$15,000. Water heater: $800-$1,500.
Property Taxes
0.27%-2.33% of value/year
Varies dramatically by state and county. Hawaii: 0.27%. New Jersey: 2.33%. Your county assessor sets the assessed value. Can be appealed.
Source: Tax Foundation
Homeowner's Insurance
$1,200-$3,000+/year
Required by lenders. Covers fire, storms, theft, liability. Flood insurance is separate and required in FEMA flood zones. Shop at least 3 providers.
HOA Fees
$0-$500+/month
If applicable. Covers shared amenities, exterior maintenance, insurance on common areas. Review the HOA's financial health before buying — weak reserves mean special assessments.
Utilities
$200-$500+/month
Electric, gas, water, sewer, trash, internet. Typically 50-100% more than renting because you're paying for an entire house, not an apartment unit.
PMI (if <20% down)
0.5-1.5% of loan/year
For a $300K loan at 0.7%: $2,100/year ($175/month). Removable at 20% equity on conventional loans. FHA MIP is for life on most loans. VA has no PMI.
Source: CFPB
What Your Real Monthly Budget Looks Like
Example for a $350,000 home with 10% down, 6.5% rate, 30-year conventional loan in a state with 1% property tax:
The mortgage payment alone is $1,991 — but the true cost of owning the home is $3,355/month when you include everything. Budget for the REAL number, not just the mortgage.
* This is an estimate for educational purposes. Your actual buying power depends on credit score, specific loan program, and lender requirements. Get pre-approved by a lender for an accurate number.
