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About Mortgage Affordability Calculator: Maximum Home Price & Loan Estimator
Determine how much house you can afford based on standard mortgage underwriting guidelines, household income, recurring obligations, and available down payment.
Underwriters standardly benchmark affordability against front-end (housing ratio) and back-end (total debt ratio) debt-to-income (DTI) ceilings.
How the calculation works
Front-end DTI cap
Maximum allowable PITI = Gross monthly income × front-end ratio limit (standard 28%).
Back-end DTI cap
Maximum allowable PITI = (Gross monthly income × back-end ratio limit [standard 36%]) − Monthly recurring debts.
How to use this calculator
- 1Enter gross annual household income and total recurring monthly debt obligations.
- 2Enter available cash down payment and current prevailing mortgage interest rates.
- 3Optionally adjust target DTI thresholds, property tax rate, and homeowners insurance.
- 4Review qualifying maximum purchase price, loan amount, and detailed PITI breakdown.
Understanding the result
Existing monthly debts like car loans or student loans often constrain purchasing power more than down payment capital.
A higher interest rate significantly dampens borrowing power by increasing the monthly principal and interest burden.
Important limitations
- Results are projections, not guaranteed returns or financial advice.
- Rates, taxes, fees, timing, and product rules can materially change real outcomes.
- Does not account for private mortgage insurance (PMI), HOA fees, transfer taxes, or closing costs. Formal qualification requires credit underwriting.
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Frequently asked questions
What is the 28/36 qualifying rule?
Lenders traditionally recommend that housing costs (PITI) do not exceed 28% of gross monthly income, and total debt obligations do not exceed 36% of gross income.
How does down payment affect max home price?
Your down payment directly augments purchasing power dollar-for-dollar above your qualifying borrowing ceiling.
Is my income information uploaded?
No. The calculator operates purely on-device in your browser.
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