HOW MUCH HOME CAN YOU AFFORD? FIND OUT IN MINUTES

Use our free Home Affordability Calculator to see your real buying power based on your income, debts, and loan terms.

What Home Price Fits Your Budget? Let's Find Out.

USE OUR FREE HOME AFFORDABILITY CALCULATOR TO SEE YOUR REAL BUYING POWER BASED ON YOUR INCOME, DEBTS, AND LOAN TERMS.

Buying a home starts with knowing your real numbers — not a guess. This calculator factors in your income, existing debts, interest rate, down payment, taxes, and insurance to give you a realistic picture of what you can afford. In just a few minutes you'll know your number.

Home Affordability Calculator

Find out how much home you can realistically afford. Enter your financial details below and the calculator will estimate your maximum home price based on your income, debts, and the loan terms you choose.

Your Financial Details
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$
$
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$
43%
Included (auto-calculated)
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Annual rate applied to loan amount
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Monthly amount
Estimated Home You May Afford
$0
Est. Monthly Payment
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Principal, Interest, Tax, Ins.
Loan Amount
$0
Home price minus down payment
Down Payment
0%
$0
Back-End DTI
0%
Total debt-to-income
Principal & Interest $0
Property Tax $0
Homeowner's Insurance $0
Mortgage Insurance (PMI) $0
Existing Monthly Debts $0
Total Monthly Obligations $0
Your Estimated Debt-to-Income Ratio
0% 28% 36% 43% 55%
0%

These numbers are a starting point. Your actual affordability depends on your full financial picture, the loan program, and current market conditions. The next step is a real conversation about your specific situation.

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Affordability Help

Annual Income

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Enter the total annual income for you and your co-borrower before taxes. Include any commission, overtime, investment income, and other sources. Lenders verify this with pay stubs, W-2s, and tax returns, so use your documented gross income for the most realistic estimate.

Interest Rate

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This will be the rate for the loan you receive. Your actual rate depends on your credit score, loan type, down payment, and market conditions. A small change in rate can significantly affect how much home you can afford. For a realistic starting point, use the current market average or a rate you have been quoted.

Length of Loan

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This determines how many years the loan will be paid off. We default to a 30-year loan, which offers the lowest monthly payment. A 15-year loan will have higher monthly payments but less total interest paid over the life of the loan. Choose the term that balances your monthly budget with your long-term financial goals.

Down Payment

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The amount of money you can afford to put towards a home. A larger down payment reduces your loan amount and monthly payment. We recommend having additional savings beyond your down payment in case of repairs or unexpected financial emergencies. Putting less than 20% down typically requires mortgage insurance.

Monthly Obligations

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The amount of debts you pay on a monthly basis. Include things such as student loans, credit card minimum payments, car payments, personal loans, alimony, and child support. Do not include utilities, groceries, or other living expenses that are not debt obligations. In Simple mode, the calculator assumes a default value.

Property Tax

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This is the estimated property taxes you would pay yearly, expressed as a percentage of the home value. The national average is roughly 1.1%, but rates vary widely by location. Some states charge over 2% while others are below 0.5%. Check your local tax assessor for a more precise figure.

Homeowner's Insurance

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Also known as hazard insurance, homeowner's insurance provides protection for your home against burglary, storms, fire and more. The value represented is the yearly cost of the insurance policy. The national average is around $2,400 per year, but varies significantly depending on your location, coverage level, and the home itself.

DTI Tolerance

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The Debt-To-Income tolerance sets the threshold for your total monthly debt-to-income ratio. This takes into consideration your monthly obligations, insurance, taxes and other expenses. The assumed tolerance is 43%, which is a common threshold for qualified mortgages. Some loan programs may allow up to 55%, while more conservative guidelines target 36%.

Mortgage Insurance

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Mortgage insurance is typically required when the down payment is below 20%. This is a policy that protects lenders against losses if a borrower defaults on their mortgage. The annual rate typically ranges from 0.5% to 1.5% of the loan amount. You can toggle mortgage insurance on or off and adjust the annual rate in Advanced mode.

Maintenance / HOA Fee

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This field can be used as a monthly expense for an investment property or for an HOA fee that normally comes along with buying an apartment or condominium. If you are buying a single-family home with no HOA, you can set this to $0 or use it to budget for general home maintenance.

What "Afford" Actually Means

When someone asks how much home they can afford, the answer is not just one number. There are two versions. There is the number a lender may approve you for, based on debt ratios and credit. And there is the number that actually fits your life, your savings goals, and your ability to sleep at night. This calculator estimates the first number. The second one requires a conversation. A lender can approve a maximum, but that does not mean it is the right number for you. Your comfort level, your other goals, and the margin you want for the unexpected all matter. The calculation here is a starting point. What you do with it is the part that counts.

How Debt-to-Income Ratio Shapes Your Buying Power

Lenders use your debt-to-income ratio, or DTI, to gauge how much of your monthly income is already spoken for. They add your existing debts to your projected housing payment, then compare that total to your gross monthly income. Most conventional loans use a 43% back-end DTI threshold, though some programs allow higher ratios with strong compensating factors. This is also where people get surprised. That car payment or student loan you barely think about each month is actively reducing the amount of home you can qualify for. Every recurring obligation shrinks your purchasing power. Paying down even one balance before applying can shift the numbers meaningfully.

The Hidden Costs Most People Miss

Principal and interest are the obvious part of a mortgage payment. But they are rarely the full picture. Property taxes, homeowner's insurance, and potentially mortgage insurance all add to the monthly total. And they are not small. In some states, property taxes alone can add several hundred dollars per month. Insurance premiums have risen significantly in recent years, particularly in areas prone to severe weather. Then there are costs that do not show up in any calculator: maintenance, repairs, and the occasional surprise. A responsible affordability estimate accounts for all of it, not just the loan payment itself.

Why the Interest Rate Changes Everything

A seemingly small difference in interest rate has an outsized impact on affordability. The reason is the compounding effect over a long loan term. On a 30-year mortgage, even a fraction of a percentage point changes how much principal you can carry within the same monthly payment. When rates move higher, your maximum purchase price drops. When they move lower, it rises. This is not about timing the market or guessing where rates are headed. It is about understanding that the rate you lock in determines your purchasing power that day. Running the numbers at different rates using this calculator will show you exactly how sensitive the result is to that single variable.

Down Payment and Mortgage Insurance

Putting down less than 20% does not disqualify you from buying. But it does introduce an additional cost. Private mortgage insurance, or PMI, is required on most conventional loans when the down payment is below that 20% threshold. It typically adds between 0.5% and 1.5% of the loan amount per year to your housing costs. That is not insignificant. However, PMI is not permanent. On conventional loans, it can be removed once you reach 20% equity in the home. The real question becomes whether waiting years to save a larger down payment costs more in missed equity and rising prices than the mortgage insurance itself. There is no universal answer. But there is a right answer for your situation, and it starts with running the actual numbers.

Simple Mode vs. Advanced Mode

In Simple mode, this calculator assumes reasonable defaults for several fields: monthly debts, property tax rate, homeowner's insurance, DTI tolerance, and mortgage insurance. These defaults are based on national averages and common lending standards. They provide a solid starting estimate. Advanced mode unlocks every field so you can fine-tune the calculation to match your actual situation. If you know your monthly obligations, your local tax rate, or your specific insurance costs, switching to Advanced will give you a more accurate picture. The difference between the two modes is the difference between a rough sketch and a detailed drawing. Both are useful, but the detailed version is closer to reality.

This calculator is for educational and estimation purposes only. It does not constitute a loan offer, pre-approval, or commitment to lend. Results are based on the information you provide and standard financial formulas. Actual loan terms, qualification, and affordability will vary based on a complete review of your financial profile by a licensed lender.

Interconnect Mortgage Inc. NMLS# 1720882 | Licensed in Florida, Georgia, and South Carolina

Ready to Turn Your Number Into an Actual Loan?

The calculator gives you a solid starting point — but your real buying power depends on your full financial picture, the loan program, and current market conditions. Let's have a real conversation about your specific situation.

Our team at Interconnect Mortgage will review your numbers, walk you through loan options that fit your situation, and help you figure out the right next step — no pressure, just straight answers.

Book A Free Strategy Call

Interconnect Mortgage Inc.

NMLS# 1720882

Contact Us

5220 Hood Rd Ste 110

Palm Beach Gardens, Florida 33418

Interconnect Mortgage Inc. is an Equal Housing Lender. We fully comply with the Equal Credit Opportunity Act (ECOA) and all other Federal regulations. All applicants applying for credit from Interconnect Mortgage Inc. will never be discouraged on on the basis of race, color, religion, national origin, sex, military status ,marital status, age, or because you get public assistance. All information we request is voluntary, and will be kept confidential. For more information on the ECOA, please visit:

http://www.ftc.gov/bcp/conline/pubs/credit/ecoa.shtm

These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including

HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners.

*When refinancing your existing loan, it's important to understand that while your monthly payments may decrease, the total finance charges you pay over the entire life of the loan could ultimately be higher.

For information directly from HUD/FHA, visit https://www.hud.gov/guidance

For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/

For information directly from the USDA, visit https://www.usda.gov/

© Copyright 2026 | Interconnect Mortgage Inc. | All rights reserved.

© Copyright 2026 | Interconnect Mortgage Inc. | All rights reserved.