Home Affordability Calculator

Find out what you can really afford

Home & Loan Details

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$0 $3M
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Current avg: ~6.5-7% (30yr fixed). Check Freddie Mac PMMS for latest rates.
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Homeowners association or condo fees

Your Income

💡 Recommended income for this home
$0/yr
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$
Bonuses, rental income, side income, etc.

Rent Comparison

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Enter your rent to see a rent vs. buy comparison

Monthly Debts

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Alimony, child support, personal loans, etc.

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Save & Compare

Estimated Monthly Payment
$0
Principal & Interest $0
Property Tax $0
Insurance $0
PMI $0

Affordability

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Front-end DTI
0%
Housing / Income
Back-end DTI
0%
All Debts / Income

Cash Needed to Close

Down Payment $0
Est. Closing Costs (2-5%) $0
Total Cash Needed $0
See closing cost breakdown

Loan Insights

Total Interest Paid
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over the life of the loan
First Payment Breakdown
$0 / $0
interest / principal
Your first payment: 0% goes to interest
Interest Principal
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Bi-weekly Payment

Equity & Amortization

Year Principal Interest Balance Equity

What If Rates Change?

ARM vs Fixed Rate

True Cost of Homeownership

Monthly Budget

Gross Monthly Income $0
Housing Payment -$0
Existing Debts -$0
Remaining (pre-tax) $0

Tax Benefits

Credit Score Impact

How Much Can I Afford?

Down Payment Comparison

Regional Living Costs

Common Mistakes to Avoid

Pre-Approval Readiness

Your Homebuying Journey

1
Check Your Finances
Review credit score, save for down payment, reduce debt. Aim for 3-6 months of expenses in savings beyond your down payment.
2-12 months before
2
Get Pre-Approved
Apply with 2-3 lenders. You'll need tax returns, W-2s, bank statements, and pay stubs. Pre-approval letters are typically valid for 60-90 days.
1-2 months before
3
Find an Agent & House Hunt
You'll sign a buyer representation agreement with your agent. Agent fees (typically 2-3%) are negotiable — they may be paid by the seller, buyer, or split. Shop around and ask about fee structures. Visit 10-15 homes before making an offer.
1-3 months
4
Make an Offer & Negotiate
Your agent will help you craft a competitive offer. Expect negotiations on price, closing costs, repairs, and contingencies.
1-2 weeks
5
Under Contract
Schedule home inspection ($400-700+), appraisal (lender-ordered), and finalize your mortgage application. Don't make big purchases or change jobs!
30-45 days
6
Close & Move In!
Final walkthrough, sign paperwork, wire closing funds, get your keys. Budget for moving costs, initial furnishing, and changing utilities.
Closing day

Mortgage Glossary

View all terms
Amortization
The process of paying off a loan through regular payments over time. Early payments are mostly interest; later payments are mostly principal.
APR (Annual Percentage Rate)
The total yearly cost of borrowing, including interest rate plus fees. Typically higher than the base interest rate because it includes lender fees. Use APR to compare loan offers.
ARM (Adjustable-Rate Mortgage)
A mortgage where the interest rate can change after an initial fixed period. Example: a 5/1 ARM is fixed for 5 years, then adjusts annually.
Closing Costs
Fees paid at the end of a real estate transaction, typically 2-5% of the home price. Includes lender fees, title insurance, appraisal, taxes, and attorney fees.
Conventional Loan
A mortgage not backed by a government agency. Typically requires higher credit scores and down payments than FHA/VA loans, but avoids upfront mortgage insurance fees.
DTI (Debt-to-Income Ratio)
Your monthly debt payments divided by gross monthly income. Front-end DTI counts only housing; back-end counts all debts. Lenders prefer under 36% back-end.
Earnest Money
A deposit (usually 1-3% of offer price) made when your offer is accepted. Shows the seller you're serious. Applied to your down payment at closing.
Equity
The portion of your home you actually own — home value minus remaining loan balance. Builds through mortgage payments and home appreciation.
Escrow
An account held by your lender to pay property taxes and insurance on your behalf. A portion of each mortgage payment goes into escrow.
FHA Loan
Government-backed loan with lower credit/down payment requirements (3.5% min at 580+ credit). MIP lasts the life of the loan if down payment is under 10%; drops after 11 years if 10%+.
LTV (Loan-to-Value Ratio)
Your loan amount divided by the home's value. Example: $800K loan on a $1M home = 80% LTV. Below 80% LTV means no PMI required.
PMI (Private Mortgage Insurance)
Insurance required when your down payment is less than 20% on a conventional loan. Protects the lender (not you) if you default. You can request removal at 80% LTV; auto-terminated at 78% of original value.
Points (Discount Points)
Upfront fees paid to lower your interest rate. One point = 1% of loan amount. Generally worth it if you plan to keep the loan for 5+ years.
Pre-Approval
A conditional commitment from a lender for a specific loan amount. Requires a credit check and income verification. Stronger than pre-qualification.
Principal
The actual amount you borrowed — your loan balance. Each mortgage payment includes a portion that goes toward reducing the principal.
Title Insurance
A one-time fee that protects against ownership disputes or liens on the property. The lender requires it; owner's title insurance is optional but recommended.
VA Loan
Government-backed loan for veterans, active military, and eligible surviving spouses. 0% down, no PMI. Funding fee varies by use count and down payment (1.25-3.3%). Disabled veterans are exempt from the funding fee.

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Estimates based on 2025 state averages and federal tax rules. Actual rates, taxes, insurance premiums, and closing costs vary by location, credit score, lender, and property type. Insurance rates have risen sharply in disaster-prone states since 2023. Tax rules (SALT cap, interest deduction limit) are subject to legislative change. This is an educational tool, not financial advice. Consult a mortgage professional and tax advisor for your specific situation.