Two things limit what you can buy: what a lender will let you borrow against your income, and how much cash you have for the down payment and closing costs. Whichever runs out first sets your price. This works out both and tells you which one is holding you back.
Everyone on the loan, added together. Use the figure before tax — that is what a lender uses.
Car loans, student loans, credit card minimums, child support. Not rent, groceries or utilities.
For the down payment and closing costs. Keep some back for moving and the first repairs.
Put more down and the price you can reach goes up — until your income becomes the limit instead.
More options
Paid in cash on the same day as the down payment, which is why they come out of the same pot here.
Per year, as a percentage of the home value.
Per year.
Per month. Lenders count these against you exactly like a mortgage payment.
Charged while you owe more than 80% of the value.
The front-end ratio. Around 28–36% is typical.
The back-end ratio — housing plus every other debt. Around 43% is the common ceiling, and some programmes go higher.
Home price you could afford
—
- Monthly payment that allows
- —
- Principal & interest
- —
- Property tax
- —
- Home insurance
- —
- Mortgage insurance
- —
- HOA dues
- —
- Amount borrowed
- —
- Down payment
- —
- Cash left over
- —
- What limits you
- —
The Legacy Estates Group
How Much Home Can I Afford?
What was entered
Breakdown
(408) 824-4428 · info@thelegacyestatesgroup.com · thelegacyestatesgroup.com
These figures are estimates for planning only. They are not a loan offer, a quote, or advice. Interest rates, taxes, insurance, and closing costs vary by lender, property, and location. Confirm every number with your lender and a licensed professional before making a decision.
Want to know what you can actually borrow?
A lender can tell you in a few days, in writing, and it costs nothing. We can point you to one, or just answer questions.
Other calculators
Mortgage Calculator
Work out the monthly payment on a home, including taxes, insurance and mortgage insurance.
Buyer Cost Calculator
See the total cash you need on closing day — not just the down payment.
Seller Net Proceeds Calculator
Work out what actually reaches your account after commission, payoff and costs.
How Much Income Do I Need to Qualify?
Start from a home you have your eye on and see what a lender would want you to earn.
What Is the APR on This Loan?
Turn a rate plus its fees into the one number that lets you compare two lenders fairly.
Should I Pay Points?
Money up front for a lower rate. See how long you would have to stay for it to pay off.
Interest-Only Calculator
A smaller payment now, and the whole balance still waiting later. See both.
Tax Benefits of Buying a Home
What the mortgage deduction is worth to you in the first year — often nothing, and worth knowing which.
Refinance Calculator
A lower payment is not the same as a cheaper loan. See both figures before you decide.
Extra Payment Calculator
What a bit more each month does to the payoff date and to the interest.
What Will My Balance Be?
How much of a loan is actually repaid after a given number of payments.