The housing affordability calculator simply looks at the maximum mortgage and house price you can afford based on your income and current mortgage rates. The affordability is based on debt-to-income ratio and includes mortgage payments as well as other monthly payments such as homeowner fees, taxes and insurance..
It estimates the maximum mortgage and house price you can afford based on your income and current mortgage rates, using a debt-to-income ratio approach.
Along with the mortgage payment, the calculation includes other typical monthly homeownership costs such as HOA fees, property taxes, and insurance, since these all factor into what you can realistically afford.
The calculator caps your affordable mortgage and house price so that your total monthly housing costs stay within a reasonable share of your income — a higher debt-to-income ratio allows for a larger mortgage, but at greater financial risk.
It uses current mortgage rates to estimate your monthly payment at different loan amounts, giving a realistic affordability figure based on today's borrowing costs rather than an outdated assumption.
The Home Purchase Tool lets you compare specific homes you're considering, and the Mortgage Refinance Calculator can help later if rates change after you buy.
