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Home Affordability Calculator

Find your max home price using the lender-standard 28/36 rule

Your Financial Details

Before taxes, combined if joint

Car loans, student loans, credit cards, etc.

20% avoids PMI; 3–5% minimum for many programs

US avg ≈ 1.1%; varies widely by state

Affordability Estimate

Recommended Home Price$319,387Limited by 28% front-end rule
Loan Amount$255,509Down: $63,877
Monthly Housing Payment$2,100P&I + tax + insurance + HOA
Monthly P&I$1,657360 payments
Front-end rule is binding. Your housing costs must stay at or below $2,100/mo (28% of gross monthly income). Your back-end budget would allow up to $352,144.

Debt-to-Income Ratios

Front-End Ratio (housing costs / gross income)28.0% / limit 28.0%
Back-End Ratio (all debts / gross income)33.3% / limit 36.0%
≤28% front-end → lender-safe≤36% back-end → lender-safeSome lenders allow up to 43–50% back-end

Monthly Payment Breakdown

Principal & Interest$1,657
Property Tax (1.10%/yr)$293
Homeowner's Insurance$150
Total Monthly Housing Payment$2,100
Existing Monthly Debts$400
Total Monthly Debt Load$2,500

28% vs 36% Rule Comparison

Front-End 28%← binding

Housing costs ≤ 28% of gross monthly income

Max monthly housing$2,100
Max home price$319,387
Max loan$255,509
Back-End 36%

All debts ≤ 36% of gross monthly income

Max total debts$2,700
Avail. for housing$2,300
Max home price$352,144
Max loan$281,715

How the 28/36 Rule Works

The 28/36 rule is the standard lender guideline for mortgage qualification. It sets two limits based on your gross (pre-tax) monthly income:

  • Front-end ratio (28%): Total monthly housing costs — principal, interest, property taxes, and insurance (PITI) — should not exceed 28% of your gross monthly income.
  • Back-end ratio (36%): All monthly debt payments including housing plus car loans, student loans, and credit cards should not exceed 36% of gross income.
  • Conservative estimate: This calculator uses whichever limit is lower, giving you a safer, lender-realistic estimate. Some lenders allow DTI ratios up to 43–50% for qualified borrowers.

Disclaimer: This tool provides estimates for educational purposes only. Actual mortgage qualification depends on credit score, loan type, lender policies, PMI, closing costs, and other factors. Consult a licensed mortgage professional or HUD-approved housing counselor before making homebuying decisions.

About

Wondering how much house you can afford? Our free home affordability calculator applies the lender-standard 28/36 rule to your gross income, existing monthly debts, down payment, and mortgage rate — instantly showing your maximum safe home price, estimated loan amount, full monthly payment breakdown, and front-end and back-end debt-to-income ratios so you can enter the market with confidence.

FAQ
What is the 28/36 rule for home buying?+

The 28/36 rule is the classic lender guideline: your monthly housing costs (principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income (front-end ratio), and all monthly debt payments combined — including housing — should not exceed 36% (back-end ratio). This calculator uses whichever limit is lower as your safe ceiling.

How is the maximum home price calculated?+

The calculator finds the home price where your total housing payment (P&I + estimated property tax + insurance + HOA) exactly equals your allowable budget under both the 28% and 36% rules, then takes the lower result. Property tax is modeled as a percentage of the home's value, so the equation is solved in closed form — not by trial and error.

Does this include property taxes and insurance?+

Yes. Enter your local property tax rate (as a % of home value per year), your estimated monthly homeowner's insurance, and any HOA fees. These are factored into the front-end ratio alongside the principal and interest payment, giving you a realistic PITI-based affordability figure.

What if my debt-to-income ratio is over 36%?+

Many lenders — especially for FHA and VA loans — allow back-end DTI ratios up to 43% or even 50% for strong-credit borrowers. The 28/36 rule is a conservative starting point. If your ratio exceeds the limit, consider paying down existing debts, saving a larger down payment, or choosing a longer loan term to lower your monthly payment.

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