Real Estate Calculators

How much house can I afford?

Gross annual income:	$  Gross Income
Downpayment amount:	$  Downpayment amount
Monthly debt (eg., car payment):	$  Monthly debt
Mortgage rate (percent):	Mortgage rate (percent)	%
Annual property taxes:	$  Annual property taxes
Annual homeowner insurance:	$  Annual homeowner insurance
	Calculate Reset
Label	Conservative	Aggressive
Maximum house price:	$  Min house price	Max house price
Loan amount:	$  Min loan amount	Max loan amount
Monthly mortgage payment:	$  Monthly mortgage payment	Max payment
Taxes/homeowner insurance:	$  Min taxes/homeowner insurance	Max taxes/homeowner insurance
Total monthly payment:	$  Min total monthly payment	Max 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).