How much home can you afford?
Income, monthly debts and down payment to a price band, using the debt-to-income limits lenders actually apply.
Price you can afford
$416,170
- Largest monthly housing payment
- $2,800
- Loan amount
- $286,170
- Principal and interest
- $1,981
- Property tax
- $694
- Insurance
- $125
Assumptions in the worked example
- Property tax at 2% of price per year
- Homeowner's insurance at $1,500 per year
- Housing payment capped at 28% of gross income, all debts at 36%
Price band by income
At 7.4% with $600 in other monthly debts and $130,000 down, using a 28% front-end and 36% back-end debt-to-income limit. Lenders vary; some allow more.
| Household income | Max housing payment | Price | Loan |
|---|---|---|---|
| $80,000 | $1,800 | $299,762 | $169,762 |
| $120,000 | $2,800 | $416,170 | $286,170 |
| $160,000 | $3,733 | $524,818 | $394,818 |
| $200,000 | $4,667 | $633,465 | $503,465 |
| $250,000 | $5,833 | $769,275 | $639,275 |
Estimates for planning. Your lender's Loan Estimate and the closing statement are the real numbers.
Want the numbers for a specific home?
Real taxes, real HOA, the actual rate you were quoted, run against the address you are looking at.