Mortgage Affordability Calculator: How Much House Could You Afford?
Estimated monthly payments include principal and interest and are not an offer to lend. Tax, insurance, and other fees and charges may apply. Default interest rate displayed is illustrative only. Interest rates, total cost of mortgage, and monthly mortgage payment are estimates based on information provided. Actual mortgage payment and interest rate may be higher or lower than those displayed and will depend on your mortgage product, collateral, and credit history.
Crunch your own numbers with our mortgage calculators for refinance or a purchase loan, and run as many different scenarios as you’d like.
What It Shows
- Recommended homebuying budget based on affordability guidelines
- Maximum affordability range based on your financial inputs
- Estimated monthly housing payment and purchasing power
What It Doesn’t
- A mortgage approval or loan commitment
- Your exact interest rate or monthly payment
- Underwriting decisions or final loan eligibility
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Glossary
Every input and output the calculator uses, explained in plain terms.
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Answer a few questions to see the rates, payments, and loan options you may qualify for.
Frequently Asked Questions
How does this calculator estimate how much house I can afford?
The calculator uses the financial information you provide, including income, monthly debts, down payment, credit assumptions, and mortgage details, to estimate a home price range that may fit within common affordability guidelines. It calculates an estimated monthly housing payment that includes principal, interest, property taxes, homeowners’ insurance, and other applicable housing expenses.
The calculator also evaluates affordability using debt-to-income ratio benchmarks, helping you compare a recommended budget with your potential maximum purchasing power. Because mortgage qualification standards vary by lender and loan program, the results should be viewed as estimates rather than a guarantee of approval.
What is the difference between a recommended budget and maximum affordability?
A recommended budget is designed to represent a comfortable homeownership payment that leaves room for savings, emergencies, retirement contributions, and other financial goals. It takes a more conservative approach to affordability and may help reduce financial strain over the long term.
Maximum affordability reflects the upper end of the home price range your financial profile may support based on the assumptions entered into the calculator. While many borrowers can qualify for homes at or near their maximum approval amount, that does not always mean it is the best financial fit. Many homebuyers intentionally purchase below their maximum qualification level to maintain greater flexibility in their budget.
What factors have the biggest impact on affordability?
Several factors work together to determine affordability. Income is often the starting point because it helps establish how much monthly housing payment may fit within your budget. Existing debt obligations, including auto loans, student loans, and credit card payments, can reduce purchasing power because they affect your debt-to-income ratio.
Mortgage rates, credit scores, down payment amounts, property taxes, homeowners insurance costs, HOA dues, and mortgage insurance can all significantly influence affordability as well. Even small changes in one of these factors may increase or decrease the amount of home you can comfortably afford.
Does this calculator show exactly what I will be approved for?
No. This calculator provides an estimate based on the information and assumptions entered. It cannot evaluate every factor that may be reviewed during the mortgage approval process, including income documentation, employment history, assets, reserve requirements, property characteristics, underwriting guidelines, and program-specific eligibility requirements.
A licensed loan officer can review your complete financial profile and provide a more personalized assessment of the loan options and purchase price range that may be available to you. The results displayed by the calculator should be used as an educational planning tool rather than a mortgage approval.
How accurate is a mortgage affordability calculator?
A mortgage affordability calculator can provide a strong estimate of your potential homebuying budget, but it depends on the accuracy of the information entered and the assumptions used in the calculation. Mortgage rates, taxes, insurance costs, loan program guidelines, and personal financial factors can all affect your actual borrowing capacity.
For many buyers, the calculator serves as a useful starting point for understanding affordability, comparing scenarios, and establishing realistic home search expectations. The most accurate way to determine what you may qualify for is to speak with a licensed loan officer and complete the pre-qualification or pre-approval process.
*loanDepot Lifetime Guarantee is non-transferable and does not apply to loans obtained to purchase a new property, new loans that result in the creation of a separate lien on the current property (i.e., a “home equity loan”), renovation loans, bond loan programs, and down payment assistance programs. “Lender fee” does not include discount points associated with the loan transaction nor does it include fee associated with third-party closing costs. Terms and conditions apply. Please refer to the website: http://www.loanDepot.com/lifetime-guarantee for the most current terms and conditions as they are subject to change without notice.