๐Ÿ“˜ About This Calculator

This calculator uses industry-standard debt-to-income (DTI) ratios to determine the maximum home price you can afford. It accounts for your full housing payment (principal, interest, taxes, insurance, PMI, HOA) plus existing debts, then back-solves the largest mortgage you qualify for.

๐ŸŽฏ Key Concepts Explained

Front-End DTI (Housing Ratio)

Total monthly housing payment รท gross monthly income. Most lenders cap this at 28% for conventional loans. It includes principal, interest, property tax, insurance, PMI, and HOA.

Back-End DTI (Total Ratio)

All monthly debt (housing + car + student loans + credit cards) รท gross monthly income. Conventional loans typically cap this at 36%. FHA allows up to 43%. The lower of the two ratios is your binding constraint.

PITI + HOA

The four components of your housing payment: Principal, Interest, Taxes, Insurance, plus HOA dues. PMI is added if your down payment is less than 20%, and drops off once you reach 20% equity.

Rate Sensitivity

A 1% rate change can swing your buying power by roughly 10%. The sensitivity table shows how much house you can afford at several rate scenarios, so you can see the impact of waiting for rates to move.

๐Ÿ’ก Tips for Realistic Affordability

๐Ÿ’ผ Income


DTI Limits

Conventional: 28% ยท FHA: 31%
Conventional: 36% ยท FHA: up to 43%

๐Ÿ’ณ Monthly Debts

Enter your minimum required monthly payments. These reduce the back-end DTI room available for your mortgage.

Sum of statement minimums across all cards
Personal loans, alimony, child support, etc.

๐Ÿฆ Loan Details

US average ~1.1%; TX/NJ/IL often 2%+
Typical PMI: 0.3% - 1.5% of loan balance annually

Affordability Summary

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Monthly Payment Breakdown

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Rate Sensitivity

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DTI Stress Test

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