House Affordability Calculator
Understanding House Affordability
This calculator helps you determine how much house you can afford based on your income, debts, and other financial factors. It considers various costs associated with homeownership to give you a realistic estimate.
Key Factors Considered
- Income and additional earnings
- Monthly debt obligations
- Down payment amount
- Interest rates and loan terms
- Property taxes and insurance
- HOA fees and other housing costs
Debt-to-Income Ratios
Lenders typically use two debt-to-income (DTI) ratios to determine how much you can borrow:
- Front-End DTI: Housing costs should not exceed 28% of your monthly income
- Back-End DTI: Total monthly debts should not exceed 36% of your monthly income
Additional Considerations
- Emergency fund and savings
- Future income changes
- Home maintenance costs
- Utility expenses
- Moving and closing costs
Understanding House Affordability
This calculator helps you determine how much house you can afford based on your income, debts, and other financial factors. It considers various costs associated with homeownership to give you a realistic estimate.
Key Factors Considered
- Income and additional earnings
- Monthly debt obligations
- Down payment amount
- Interest rates and loan terms
- Property taxes and insurance
- HOA fees and other housing costs
Debt-to-Income Ratios
Lenders typically use two debt-to-income (DTI) ratios to determine how much you can borrow:
- Front-End DTI: Housing costs should not exceed 28% of your monthly income
- Back-End DTI: Total monthly debts should not exceed 36% of your monthly income
Additional Considerations
- Emergency fund and savings
- Future income changes
- Home maintenance costs
- Utility expenses
- Moving and closing costs