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Home Affordability

Mortgage Affordability Calculator

Updated May 5, 2026 · See your full PITI — principal, interest, taxes, insurance & PMI — for any home price.

The total purchase price of the home you're buying.

20% · No PMI

Put 20% down to avoid PMI. Edit either field — the other syncs automatically.

% annual APR

The annual interest rate from your lender.

Loan Term

Total Monthly Payment

$0

PITI + PMI

P&I
Principal & Interest
Property Tax
Home Insurance
PMI
HOA Fees

For a $300,000 home with $60,000 down at 6.5% interest over 30 years, monthly P&I is $1,516. Total PITI: $1,917/month. The 28/36 rule suggests this fits income of $82,157+/year.

Typical scenario — enter your details above for your personalized estimate.

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0%

Not a Loan Offer or Commitment: This calculator provides estimates based on the information you enter. Actual loan terms, rates, and payments will vary based on your creditworthiness, lender requirements, and current market conditions. This is not a commitment to lend, pre-qualification, or pre-approval. Rate information shown is for illustration only and may not reflect rates currently available to you. Contact a lender directly for personalized rate quotes and official loan disclosures.

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.

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).

Official Sources

  1. CFPB: Buying a House Guide (opens in new tab) — Consumer Financial Protection Bureau resources for understanding home buying, mortgage payments, and homeowner protections.
  2. HUD: Buying a Home (opens in new tab) — U.S. Department of Housing and Urban Development guidance on the home buying process, FHA loans, and homeowner assistance programs.
  3. FHFA: Conforming Loan Limits (opens in new tab) — Federal Housing Finance Agency annual loan-limit data for conventional conforming mortgages.

Last updated:

Editorial Note: DigitalCalculator.info publishes educational content about personal finance. This article is for informational purposes only and does not constitute financial or legal advice. Consult a licensed professional before making financial decisions.