Home Affordability Calculator

Wondering how much house you can afford?

Use Lock It Mortgage's affordability calculator to estimate how much home you may be able to afford. Simply enter your monthly income, down payment, and recurring debts, while factoring in interest rates, property taxes, insurance, and HOA fees.

Gross Monthly Income

Recurring Monthly Expenses

Car Payments

Minimum Credit Card Payments

Student Loans

Other Debts

Total Monthly Debts: $500

Maximum Monthly Payment

Down Payment

% $

Equivalent to $0

Interest Rate

Enter your own

Not sure what rate to choose?

See today's live rates and compare your available options in just a few clicks.

Check Live Rates

Loan Term

Taxes, Insurance, HOA Fees & More

Annual Property Tax Rate

Homeowners Insurance

$ /Year

HOA Dues

$ /Month

Include Mortgage Insurance

You can afford a house up to

$300,000

Loan Details

Home value $0

Loan amount $0

Down payment $0

Monthly mortgage payment $0

Current debt-to-income (DTI) Ratio

0% / 0%

Housing ratio

Housing Ratio (Front-End Ratio): The percentage of your monthly income that goes strictly toward your new home payment, including principal, interest, property taxes, insurance, HOA dues, and mortgage insurance.

0%
Total debt ratio

Total Debt Ratio (Back-End Ratio): This shows the percentage of your income required to cover your new home payment plus all your other ongoing monthly debts, such as car notes, student loans, and credit card minimums.

0%

Monthly Payment Breakdown

Enter your monthly income or payment

We'll calculate your payment breakdown automatically.

View detailed payment & amortization schedule Schedule a free consultation

How Our Home Affordability Calculator Works

We keep the math simple so you can focus on the excitement of finding your home. Here is how our calculator estimates your buying power behind the scenes:

Balancing Income & Debts: We look at your gross monthly income and existing monthly debt payments, such as car loans or credit cards, to see how much room you have for a mortgage payment.
Finding Your Budget: We use a planning guideline of up to a 50% debt-to-income (DTI) ratio to estimate the portion of your monthly income that could be available for housing expenses.
Estimating Your Home Price: The calculator works backward from that monthly budget to estimate a potential purchase price, factoring in estimated principal, interest, taxes, insurance, and HOA fees.

Please keep in mind that this 50% guideline is just a helpful planning tool, not a strict rule. Every lender and loan program is different, and your actual qualification will depend on a complete review of your income, credit, and assets.

How to Determine How Much House You Can Afford

Buying a home is an exciting milestone, and figuring out your budget shouldn't be stressful. We are here to make the numbers simple!

A traditional guideline many people use to estimate how much home they can afford is the 28/36 rule. It was designed to help homebuyers keep their monthly finances balanced and avoid becoming "house poor". Here is what those numbers mean:

The 28% (Housing Ratio / Front-End Ratio): This recommends that no more than 28% of your gross monthly income goes toward your housing expenses, including principal, interest, property taxes, homeowners insurance, HOA fees, and mortgage insurance.
The 36% (Total Debt Ratio / Back-End Ratio): This recommends that no more than 36% of your gross monthly income goes toward your total monthly debt obligations combined, meaning your proposed housing payment plus other recurring debts such as car loans, student loans, and credit card minimums.

While the 28/36 rule is a useful, conservative baseline for planning your budget, it is not a hard stop in modern mortgage lending. Today's mortgage guidelines look at the bigger picture, including:

Housing Ratio (Front-End): Helps determine how much of your income goes toward your housing payment.
Total Debt Ratio (Back-End): Looks at your overall monthly debt obligations, including your housing payment, car loans, student loans, and credit card payments.
Flexible Guidelines: Depending on the loan program and your overall financial profile, automated underwriting systems may allow total debt-to-income (DTI) ratios of 50% or higher for some well-qualified borrowers, particularly when supported by factors such as strong credit, cash reserves, or other strengths in the application.

DTI Limits Across Common Loan Programs

* Scroll right to view the full table >

Loan Program	General Maximum DTI	Key Notes & Guidelines
Conventional (Fannie Mae / Freddie Mac)	Up to 45% – 50%+	Often capped around 45% with automated underwriting systems, but can stretch up to 50%+ with strong compensating factors (e.g., high credit score, cash reserves).
FHA Loans	Standard: 43% Stretched: Up to 50% – 57%	Allows higher ratios if the borrower has strong compensating factors, such as high credit scores or significant cash reserves.
VA Loans	Flexible / No strict cap	Focuses heavily on residual income (cash left over after major expenses) rather than a strict DTI cap.
USDA Loans	Standard: 41% Stretched: Up to 44% – 46%	Evaluates housing ratio (29%) and total DTI (41%), with exceptions for automated approvals.
Non-QM Loans	Up to 50% -55%	Alternative documentation programs offering flexible DTI parameters and alternative qualification methods for self-employed borrowers.

5 Practical Ways to Increase Your Buying Power

If you want to safely increase how much house you can afford, consider these five practical strategies:

Pay Down or Pay Off Existing Monthly Debts

Paying down credit cards or car loans can free up monthly budget room, potentially increasing your borrowing power.

Note: You may be able to pay down or pay off certain debts before applying or pay them off at closing using available funds. Installment loans with 10 payments or less may often be excluded from your debt calculation without being paid off entirely. Always consult with a licensed mortgage advisor to confirm how this applies to your situation.

Increase Your Down Payment

A larger down payment means borrowing less, which can lower your monthly mortgage payment and potentially increase the amount of home you can afford.

Improve Your Credit Score

A stronger credit profile may help you qualify for better interest rates, which can reduce your monthly payment and potentially increase your buying power.

Note: Even small improvements can make a difference. If you have minor errors on your credit report or a small balance that can be paid down, addressing them may help you qualify for better terms.

Add a Co-Borrower or Co-Signer

Adding a co-borrower or co-signer may combine additional income or financial strength with your own, potentially increasing your purchasing power.

Note: Their debts and financial obligations may also be included in the qualification process, so lenders will evaluate the combined financial picture.

Choose a Longer Loan Term

Choosing a longer loan term can lower your monthly payment, which may increase the amount you can qualify to borrow.

Note: A 30-year loan typically provides the lowest monthly payment compared with shorter terms such as 20 or 15 years, which can help maximize purchasing power. Shorter terms, however, may help you build equity faster if they fit comfortably within your budget.

Ready to Take the Next Step?

Online calculators are a fantastic way to explore your options, but getting pre-approved is where everything comes together. When you are ready, our team at Lock It Mortgage is here to confirm your true budget and help you shop with total confidence.

Schedule a Free Consultation

Have questions or want to talk through your numbers?

Our friendly mortgage advisors are here to listen to your goals and map out what you can comfortably afford.

Start Your Free Pre-Approval

Ready to see what you qualify for?

Take just a couple of minutes to submit your details online, and we will build a custom financing strategy just for you.

Frequently Asked Questions

Should I max out the total affordability amount calculated here?

It is usually best not to stretch right up to your absolute maximum. While the calculator estimates what you may qualify for on paper, leaving some breathing room in your monthly budget gives you more flexibility for your lifestyle, savings, and unexpected expenses.

How do I calculate my income for this?

Use your gross monthly income, your total earnings before taxes and other deductions. When you apply, our team will review your financial documents to verify your actual qualifying income.

What monthly debts should I list?

Include regular monthly debt payments such as car loans, credit cards, and student loans. You generally do not need to include everyday living expenses such as rent, utilities, groceries, or phone bills. Be sure to enter the monthly payment amount, not the total balance.

How does adding a co-borrower change my numbers?

Adding a co-borrower may increase your purchasing power by combining your qualifying incomes. Keep in mind that their monthly debts and financial obligations will also be included when determining the overall debt-to-income ratio.

Will my student loans change what I can buy?

Yes. Student loans can affect your purchasing power because lenders generally have to account for a monthly student loan payment when calculating your debt-to-income ratio. The payment used for qualification can vary depending on the loan type and repayment plan, so your actual numbers may differ.

Does this mean I am pre-approved?

Not yet! Think of this calculator as a helpful planning tool, not a formal pre-approval. To receive an official pre-approval, we will need to review your financial documents and verify your qualifying information.

What if my down payment comes from a gift or savings?

You can enter the amount you plan to use toward your down payment. Whether the funds come from your personal savings, an eligible gift, or a down payment assistance program, including them in your estimate can help you see how a larger down payment may affect your loan amount and monthly payment.

Should I include overtime, bonuses, or commission in my income?

For a quick estimate, you can include regular additional income if you have a consistent history of earning it. For an official pre-approval, we will review your income history and documentation to determine how much of your overtime, bonus, or commission income can be used for qualifying purposes.

What if my credit score isn't perfect yet?

That's okay. This calculator provides a general estimate using an assumed interest rate, but your actual credit score can affect the interest rate and monthly payment you qualify for. If you're working on improving your credit, even small improvements may help you qualify for better terms.

How much should I actually save for closing costs?

Beyond your down payment, it is smart to set aside additional funds for closing costs and other expenses. Closing costs can vary depending on the loan, property, location, and other factors, so there isn't one percentage that applies to everyone. Keeping some extra cash available can help you avoid surprises when you're ready to make an offer.

What happens if interest rates change while I am house hunting?

Mortgage rates can change frequently. Even a small change in your interest rate can affect your monthly payment and overall purchasing power. That's why it can be helpful to leave some room in your budget rather than shopping right at your maximum estimated amount.

Can I use this calculator if I am self-employed or a 1099 worker?

Yes. You can use the calculator for a general estimate, but self-employed and 1099 income can be calculated differently for mortgage qualification. During an official pre-approval, we will review your tax returns and other documentation to determine your qualifying income, so your final numbers may be different from the calculator's estimate.

Disclaimer: This calculator is for educational and estimating purposes only and does not constitute a commitment to lend or guarantee of loan approval. Results are based on the information you provide and estimated rates and other assumptions, which are subject to change without notice. Actual loan approval requires formal borrower qualification, credit approval, and property appraisal. Program parameters, terms, and conditions apply. Contact a Lock It Mortgage advisor to confirm current rates, program availability, and eligibility requirements.