House Affordability Calculator
Evaluate your home buying budget across conservative (28%), moderate (36%), and stretch/aggressive (43%) debt-to-income tiers.
How to use the House Affordability Calculator
- 1Enter annual gross household income.
- 2Enter down payment savings.
- 3Enter existing monthly non-housing debt payments.
How House Affordability is Calculated
Computes three home price points: Conservative (28% front-end), Moderate (36% back-end), and Aggressive (43% max qualified cap).
Provides a realistic safe buying range rather than a single risky maximum number.
- 1Conservative Price (28% DTI): $390,000
- 2Moderate Affordable Price (36% DTI): $445,000
- 3Stretch Maximum (43% DTI): $495,000
What affects House Affordability results
- Future career earnings trajectory and job security.
- Emergency savings fund retained after closing.
Frequently Asked Questions
Should I buy at my maximum pre-approved loan limit?
Financial planners generally advise against buying at your maximum pre-approved cap to avoid becoming "house poor" and leaving room for unexpected repairs.
How does interest rate affect maximum house affordability?
A 1% increase in mortgage rates typically reduces home purchasing power by approximately 10% for the same monthly payment budget.
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