Mortgage Affordability Calculator
Find out how much home you can really afford. Apply standard US 28/36 underwriting (or FHA 31/43) with PMI, property tax, insurance, and HOA priced in.
Your finances
Max home price
$262,730
About $1,867 per month, all in.
Binding rule: front-end (housing-to-income).
Max loan principal
$212,730
Front-end max housing
$1,867
Back-end housing room
$2,100
Monthly payment breakdown
Principal and interest
$1,415
Property tax
$263
Insurance
$100
PMI
$89
Front-end ratio: 28.0% of gross. Back-end ratio: 32.5%.
Frequently Asked Questions about the Mortgage Affordability Calculator
What are the 28/36 rules lenders use?
The 28% front-end rule caps your housing payment (P+I+T+I, plus HOA and PMI) at 28% of gross monthly income. The 36% back-end rule caps your total monthly debts, including housing, at 36% of gross. Most conventional lenders use both, and the tighter of the two is what binds.
How is FHA different from conventional underwriting?
FHA loans allow higher ratios, typically 31% front-end and 43% back-end, because they are government-insured and aimed at lower down payments. That gives you more buying power, but you pay an upfront mortgage insurance premium plus an annual MIP that does not drop off the way conventional PMI does.
When does PMI apply and when can I drop it?
Private mortgage insurance applies on a conventional loan whenever your equity is under 20%, which is the same as a loan-to-value above 80%. You can request cancellation once you reach 20% equity through payments or appreciation, and lenders must auto-cancel at 22% equity based on the original schedule.
Why is the total monthly payment more than just principal and interest?
Lenders escrow property taxes and homeowners insurance with your monthly payment, and they add PMI if you put less than 20% down. HOA dues are separate but still count against your housing budget. A $2,000 P+I can easily become $2,600 once everything is added in.
Should I borrow the maximum I am approved for?
Usually not. Approval limits are the lender's risk ceiling, not a budget. The conservative 25/33 profile leaves more room for retirement savings, repairs, and the next rate shock. A house at 70 to 80% of your maximum tends to feel a lot more comfortable five years in.