Mortgage Affordability Calculator
Calculate how much house you can afford with full PITI breakdown. See monthly payments including principal, interest, taxes, insurance, and PMI based on your down payment.
Quick Answer
How much house can I afford?
For a $300,000 home with $60,000 down (20%) at 6.5% interest for 30 years, your monthly P&I payment is approximately $1,516. With taxes, insurance, and fees, expect $1,900-2,200/month total PITI. The 28/36 rule suggests this home suits income of $80,000+/year.
Calculate your complete housing payment including taxes, insurance, and PMI.
Key Takeaways
- 28/36 Rule: Keep housing costs under 28% of gross income, total debt under 36%
- 20% down avoids PMI: Less than 20% adds $100-300/month in private mortgage insurance
- PITI matters more than P&I: Taxes + insurance can add $400-800/month to your payment
- DTI affects approval: Lenders want total debt-to-income below 43% (ideally under 36%)
- 15-year vs 30-year: 15-year saves 50%+ in interest but has 40% higher payments
Affordability Projections
Principal vs Interest Over Time
Mortgage Affordability Comparison
Comparison Insights
Add another scenario to see comparison insights.
Down Payment Guide: How Much Should You Put Down?
Conventional Loans
3-5% minimum down payment required. PMI required until you reach 20% equity. Best for borrowers with good credit (620+).
FHA Loans
3.5% down with 580+ credit score (10% with 500-579). MIP required for life of loan unless you put 10%+ down. Best for lower credit scores.
VA Loans (Veterans)
0% down payment for eligible veterans, active military, and surviving spouses. No PMI, but funding fee applies. Excellent option if you qualify.
USDA Loans (Rural)
0% down payment for eligible rural/suburban areas. Income limits apply. No PMI but guarantee fee required. Great for rural homebuyers.
Putting 20% down avoids PMI, saving $100-300/month on a typical loan. However, don't deplete your emergency fund to hit 20%. Many buyers successfully purchase with 10% down and refinance once they build equity.
Impact of Down Payment on Your Mortgage
Example: $400,000 home at 6.5% APR for 30 years
| Down Payment | Loan Amount | Monthly P&I | Est. PMI | Total Interest |
|---|---|---|---|---|
| 3% ($12,000) | $388,000 | $2,452 | $323/mo | $494,811 |
| 5% ($20,000) | $380,000 | $2,402 | $271/mo | $484,595 |
| 10% ($40,000) | $360,000 | $2,275 | $180/mo | $459,002 |
| 20% ($80,000) | $320,000 | $2,023 | $0 | $408,002 |
Frequently Asked Questions
This Affordability Calculator helps you explore "what-if" scenarios and understand what you can afford. The Mortgage Payment Calculator provides detailed payment analysis with amortization schedules and extra payment impact once you know your target price.
The 28/36 rule is a good guideline: keep housing costs (PITI) under 28% of gross income, and total debt payments under 36%. For a $100,000 household income, that's about $2,333/month maximum for housing. However, lenders may approve up to 43% DTI - just because you can borrow it doesn't mean you should.
Private Mortgage Insurance (PMI) protects the lender if you default. It's required on conventional loans with less than 20% down, typically 0.5-1% of the loan annually ($100-300/month).
Ways to avoid PMI: Put 20% down, choose VA/USDA loans (no PMI), ask about lender-paid PMI (higher rate instead), or request PMI removal once you reach 20% equity.
30-year mortgage: Lower payments (~$1,516/month on $240K at 6.5%), more flexibility, better cash flow. You pay more total interest (~$306K) but can invest the payment difference.
15-year mortgage: Higher payments (~$2,090/month) but you save 50%+ on total interest (~$136K). Builds equity faster. Choose if you can comfortably afford the higher payment.
Closing costs: 2-5% of loan amount ($6,000-15,000 on $300K home)
Moving expenses: $1,000-5,000+ depending on distance
Home maintenance: Budget 1-2% of home value annually ($3,000-6,000)
Utilities: Often higher than renting ($200-400/month more)
Furniture/appliances: New home often needs items ($5,000-20,000)
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