HME

Home Affordability Calculator

The home price your income supports under a debt-to-income limit, after your other debts, tax and insurance.

Finance & InvestmentTop 100 · #32Runs in your browser

Result…

$
$

Car, student loans, card minimums.

$
%
years
% / yr
$/ yr
%

A common rule of thumb; lenders' limits differ.

 

…

How it's calculated

Housing budget = income ÷ 12 × DTI limit − other debts
Budget = L × a + (L + down) × tax ÷ 12 + insurance ÷ 12, a = i ÷ (1 − (1 + i)^−n)
Price = L + down payment

Lenders check that all your debt payments, the new mortgage included, stay under a share of your gross income; 36% is a common guideline. This finds the largest loan that fits under the limit you set, then adds your down payment. Being approved for it does not mean it is comfortable.

Your numbers, step by step

    More in Finance & Investment

    MTGMortgageYour monthly home payment: principal and interest, plus property tax and insurance, and what the loan costs in interest.Top 100 · #3LNLoanThe fixed monthly payment on a loan, and how much of what you repay is interest.Top 100 · #4CⁿCompound interestWhat a sum grows to when interest earns interest, with optional monthly additions.Top 100 · #5INVInvestmentWhat regular investing grows to at a steady yearly return, and how much of it is growth.Top 100 · #22RETRetirementWhat your savings could reach by retirement, and the monthly income they could pay until the age you plan for.Top 100 · #23SAVSavingsHow a savings account grows with regular deposits at your bank's rate and compounding.Top 100 · #24