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Real Estate Field Guide
Tools · Affordability

What can you
afford?

An illustrative ceiling on home price based on income, monthly debt, and the share of monthly income comfortably allocated to housing.

Loan type
With income, /mo in other debt, and saved for a down payment plus for closing costs at 7.000%, the comfortable home price is $380,000.
$380,000

Income is the limit at this price, DTI caps monthly housing.

Monthly housing: $2,494 (P&I + tax + ins)

Illustrative. Your lender will price this differently, the Loan Estimate they produce is the real number. More on this →

Sensitivity
Per-property assumptions
How we calculate this

This calculator estimates the maximum home price at which monthly housing costs (principal, interest, property tax, insurance, applicable mortgage insurance, and HOA) plus existing monthly debt would consume the share of monthly income specified by the DTI target. The default 36% target reflects a conventional rule of thumb for comfortable affordability; lenders often allow higher ratios (typically up to 43% on conforming, higher on FHA in some cases), but those represent the maximum a borrower might qualify for, not necessarily what is comfortable.

The result is illustrative only. It does not represent a loan approval, and the calculator does not model qualifying logic (specific FHA/VA underwriting tolerances, residual income requirements, eligibility criteria), it models math. A licensed mortgage professional can produce a Loan Estimate based on verified income, credit history, and current rate quotes.

HOA dues are property-association fees common to condos, townhomes, co-ops, and planned communities. Typical ranges: $0 for detached single-family in non-HOA neighborhoods; $200–$500 for suburban townhomes and condos; $400–$1,500 for urban condos in dense markets; $1,000–$3,000+ for NYC co-ops, luxury high-rises, and SF buildings with amenities or live-in staff. Lenders count monthly HOA toward DTI alongside PITI, so it directly reduces the max comfortable price this calculator produces. In high-cost cities the HOA line can cut the max price by 15–30% versus a no-HOA assumption, entering a realistic figure for the property type matters meaningfully more in those markets.

Default assumptions used

  • Interest rate · 7.000% (default 7.000%; will source from Freddie Mac PMMS in production)
  • Term · 30 years
  • Property tax · 1.10% of home value annually (US median per Tax Foundation / Census ACS)
  • Homeowners insurance · $1,800 per year (US median per NAIC)
  • Mortgage insurance · PMI 0.32%–0.85% annually when LTV exceeds 80% (auto-tiered)
  • Closing costs · 3% of home price (illustrative; actuals vary by state and lender)