House Affordability Calculator
House Affordability
House affordability depends on income, debts, down payment, and interest rates. Lenders use the debt-to-income (DTI) ratio to determine how much you can borrow.
Key Guidelines
- 28% rule: Housing costs ≤ 28% of gross income
- 36% rule: Total debts ≤ 36% of gross income
- Down payment: 20% recommended to avoid PMI
💡 Tips
- Get pre-approved before house hunting
- Factor in property taxes and insurance
- Consider maintenance costs (about 1% of home value per year)
- Do not stretch your budget too thin