Finance · Mortgage
Home Affordability
Estimate max monthly housing payment and home price from DTI and income constraints.
Last reviewed: February 18, 2026
Guided Flow
Next steps
Finance
Estimate closing costs
Add cash-to-close assumptions before setting your offer ceiling.
Finance
Open mortgage payment
Convert budget to estimated monthly payment scenarios.
Ownership
Estimate property tax
Add local tax assumptions before setting your offer range.
Guide
Read: affordability guide
Use DTI and full housing costs in one practical workflow.
What this calculator does
Estimate max monthly housing payment and home price from DTI and income constraints.
How it's calculated
- Inputs are validated before running the calculator-specific compute() function.
- Core math is deterministic and implemented in src/lib/calculators/home-affordability.ts.
- Results are recalculated instantly as values change and are shareable via query parameters.
- Disclosure assumptions and limitations are shown on-page for decision context.
Example
Example scenario: Household gross income (annual) = 165000 USD; Monthly debts (minimum payments) = 900 USD; Down payment = 125000 USD; Interest rate = 6.25 %. Sample output: Max affordable monthly housing payment: $3,850.00
Common mistakes
- Using optimistic rates or appreciation assumptions without testing a conservative case.
- Ignoring taxes, insurance, HOA, or maintenance in monthly cost planning.
- Treating modeled outputs as guaranteed quotes rather than planning estimates.
- Not comparing at least two scenarios before making a financing decision.
- Skipping professional review for legal, tax, underwriting, or insurance details.
FAQs
Why do two ratio limits matter?
Lenders often check both front-end housing ratio and back-end DTI. The stricter limit usually controls affordability.
Is this a loan pre-approval?
No. It is a planning estimate. Actual approval depends on credit profile, reserves, property type, and lender overlays.
Can I model stricter affordability than lender limits?
Yes. Lower your target DTI and housing ratio inputs to apply your own comfort threshold.
Does this include PMI?
No. Add expected PMI into HOA or adjust your target payment downward to keep margin for PMI.
Why is the home price solved iteratively?
Monthly payment combines mortgage and tax terms tied to home price, so a direct closed-form estimate is less clear.