House Affordability
Finance & LoansDetermine maximum affordable home purchase price and monthly mortgage budget based on gross household income, monthly debt obligations, down payment, and lender DTI debt caps.
Max home price · loan 308,511 · P&I 1,950/mo
About this calculator
Before touring homes or applying for mortgage pre-approval, prospective homebuyers must understand how financial lenders assess debt capacity. Mortgage underwriters evaluate front-end DTI (housing costs as a percentage of gross income, typically capped at 28%) and back-end DTI (all recurring debts plus housing, capped around 36% to 43%).
This calculator estimates your maximum loan size, purchase price with down payment, estimated property taxes, homeowners insurance, and private mortgage insurance (PMI) to ensure your monthly payment remains financially comfortable.
How It Works & Formula
The engine computes maximum allowable monthly housing expenditure using front-end and back-end DTI limits. It subtracts estimated property taxes and insurance, then reverses the loan amortization equation at your specified mortgage interest rate to determine maximum borrowing principal.
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