Mortgage Affordability Calculator (How Much House?)

How lenders decide what you can afford

Housing payment ≤ 28% of gross monthly income · All debts ≤ 36%

Both limits apply; the tighter one wins. On $95,000 income with $450/month of debts, the housing budget is about $2,217/month — supporting roughly a $340,000–360,000 home with $60,000 down at 6.5% (the calculator solves it exactly, including an estimated 1.6%/year for tax and insurance).

Approved-for vs comfortable-with

Lenders will often approve beyond 28/36 (FHA loans stretch to 31/43+). But approval measures their risk of losing money, not your quality of life. The "comfortable" row uses 25% of income — the level at which homeowners in surveys still save, travel, and handle repairs without card debt. Being house-poor is the most common regret in first-buyer forums; the gap between the two numbers above is the insurance against it.

Ways to raise the number

• Kill a debt payment: if the 36% cap binds, ending a $450 car payment adds roughly $70,000–90,000 of home price. Check with the DTI calculator.
• Bigger down payment: each extra $10,000 adds ~$10,000 of price and cuts PMI risk.
• Rate shopping: half a point lower rate adds ~5% of buying power.