Real Estate Calculators

How much house can I afford?

Gross annual income:  
Downpayment amount:  
Monthly debt (eg., car payment):  
Mortgage rate (percent):
Annual property taxes:  
Annual homeowner insurance:  
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Maximum house price:
Loan amount:
Monthly mortgage payment:
Taxes/homeowner insurance:
Total monthly payment:

Assumptions

To arrive at an affordable home price, we apply the guidelines used by most lenders. We use a debt-to-income ratio of no more than 36%. We also assume a housing payment-to-income ratio of 28% for a conservative estimate, and 33% for an aggressive one. Before buying, however, you should factor in other savings needs, including retirement and college.


We also assume a 30-year mortgage term, annual property tax of $3,500 and homeowners insurance of $800. Adjust as needed. We do not factor in private mortgage insurance, which you'll owe if your down payment is less than 20% of the purchase price (averages $50 to $80 per month).