MortgageIQ
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How Much House Can You Afford?

Enter your income and finances for an instant affordability estimate with full payment breakdown.

You can afford homes between $286,000 and $316,000

Your Finances

Annual Household Income$85,000
Monthly Debt Payments$500

Car loans, student loans, credit cards, etc.

$40,000
HOA Fees (optional)$0
Home insurance is estimated at 0.35% of home value annually.

Your Affordability Range

You can afford homes between $286,000 and $316,000

Based on a 6.25% interest rate and 35.1% debt-to-income ratio

Recommended Price

$286,000

$1,772.06/mo · conservative

Maximum Price

$316,000

$1,983.78/mo · upper limit

Monthly Payment Breakdown

Monthly$1,983.78
Principal
$261.88
Interest
$1,437.50
Property Tax
$192.23
Insurance
$92.17
HOA
$0.00
Total Monthly$1,983.78
Debt-to-Income Ratio

35.1%

Excellent
0%36%43%60%

Your DTI is within ideal range. Lenders typically approve up to 43%.

PMI may apply— your down payment is under 20%, so lenders typically require private mortgage insurance.
Loan-to-Value (LTV): 87.3%

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What's Next?

Keep going — here's what most people calculate next.

See your monthly payment breakdown →

Break down principal, interest, taxes, insurance, and PMI for your target home price.

Compare renting vs buying →

Find out if buying beats renting over your planned timeline.

Or explore all calculators

Frequently Asked Questions

How much house can I afford on my income?▾
Most lenders use the 28/36 rule: spend no more than 28% of gross monthly income on housing, and no more than 36% on total debt. Our calculator applies these guidelines along with your down payment, credit score, and local property taxes to estimate your affordable price range.
What is a good debt-to-income ratio for a mortgage?▾
A DTI below 36% is ideal and typically qualifies for the best rates. Between 36–43% may still qualify with strong credit, while above 43% makes approval difficult. Our calculator shows your DTI with a color-coded indicator so you know where you stand.
How does my credit score affect how much house I can afford?▾
Higher credit scores unlock lower interest rates, which reduces your monthly payment for the same loan amount. A difference of 1–2 percentage points can change your affordable home price by tens of thousands of dollars over a 30-year term.
Should I include property taxes and insurance in my budget?▾
Yes. Your total monthly housing cost includes principal, interest, property taxes, homeowners insurance, and HOA fees. Lenders evaluate your full payment (PITI + HOA), not just the mortgage payment alone.
What down payment do I need to buy a home?▾
While 20% down avoids private mortgage insurance (PMI), many buyers put down 3–10%. A larger down payment reduces your loan amount and monthly payment, letting you afford a more expensive home or keeping payments lower on the same price.