Find out how much house you can afford based on your income, debts, down payment, and current interest rates using the 28/36 rule.
Knowing how much house you can afford prevents one of the most common financial mistakes: buying more home than your budget can handle. Our calculator factors in your income, existing debts, down payment, and current interest rates to determine a realistic price range. Lenders typically approve you for more than you should spend — this tool helps you set your own responsible limit.
Results are estimates only. Not financial advice.
🔒 Financial Disclaimer: These calculations are estimates for informational purposes only. Results are not financial advice. Consult a qualified financial advisor before making major financial decisions.
Calculations based on publicly available data from government agencies. Actual results may vary based on individual circumstances.
30-year fixed-rate mortgages — updated April 2026
| Lender | Rate | APR | Est. Payment | Action |
|---|---|---|---|---|
Community Credit UnionBest Rate | 6.125% | 6.280% | $1,217/mo | |
National Lending Co | 6.250% | 6.410% | $1,231/mo | |
Big Bank Mortgage | 6.375% | 6.520% | $1,247/mo | |
Premier Mortgage | 6.450% | 6.580% | $1,258/mo | |
Digital Home Loans | 6.500% | 6.630% | $1,264/mo |
Rates shown are for illustrative purposes. Actual rates may vary based on credit score, loan amount, down payment, and market conditions. Contact lenders directly for personalized rate quotes.
The Home Affordability Calculator determines the maximum home price you can reasonably afford based on the 28/36 rule, the lending guideline used by most mortgage lenders and banks. The 28% housing ratio means your total monthly housing payment (principal, interest, taxes, insurance, and any HOA fees) should not exceed 28% of your gross monthly income. The 36% total debt ratio means your total monthly debt payments — housing plus car loans, student loans, credit card minimums, and other obligations — should not exceed 36% of gross monthly income. The calculator uses both ratios and returns the more conservative (lower) result as your maximum affordable home price. It works backwards from your income to determine the largest loan you qualify for, then subtracts your down payment to arrive at the maximum purchase price. This is the same methodology used in mortgage pre-approval, though lenders also factor in credit score, employment history, and assets. This calculator benefits first-time homebuyers who want to set realistic budgets before house hunting, real estate agents working with buyer clients, and financial planners reviewing a client's housing expense ratio. It helps prevent the common mistake of looking at homes above budget — by entering just your income, existing debts, and expected down payment, you immediately see what price range is realistic. Couples combining incomes can enter household totals, and the calculator handles any loan term from 5 to 40 years. The property tax and insurance rate inputs ensure the estimate includes the full payment, not just principal and interest. This calculator does NOT guarantee loan approval — lenders use additional criteria including credit score, employment stability, and debt-to-income ratios that may differ from this simplified model. It does not account for HOA fees, variable income (self-employed individuals may need to use average monthly income), or the possibility that interest rates could rise during your home search, affecting how much you ultimately qualify for. It also assumes a conventional fixed-rate mortgage and does not model FHA, VA, or other specialized loan products with different approval criteria. Use this as a starting budget, not a final approval amount.
Result: On a $75,000/year salary with $500/month existing debts, a 20% down payment of $40,000, and a 6.5% mortgage rate: the 28% housing limit allows a ~$1,750/month payment, while the 36% debt limit also allows ~$1,750/month after existing debts. This yields a maximum home price of approximately $275,000 — with property taxes and insurance included.
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