Home Affordability Calculator
Enter your income, existing debts, and down payment to instantly see the maximum home price you can afford — plus your estimated monthly payment and debt-to-income ratio.
Monthly Payment at Various Price Points
Stacked payment components vs. your maximum housing budget.
Affordability Breakdown
| Metric | Value |
|---|---|
| Front-End Limit (28% of gross monthly) | — |
| Back-End Limit (43% of gross monthly − debts) | — |
| Binding Constraint | — |
| Maximum Loan Amount | — |
| Recommended Down Payment | — |
| Maximum Home Price | — |
| Monthly Principal & Interest | — |
| Monthly Property Tax | — |
| Monthly Insurance | — |
| Monthly HOA | — |
| 💰 Total Monthly Housing | — |
| 📊 Front-End DTI | — |
| 📊 Back-End DTI | — |
Monthly Payment Breakdown
Where every dollar of your estimated housing payment goes.
Home Price Affordability Range
See how payment changes across a spectrum of home prices. Your max affordable price is highlighted.
| Home Price | Down Payment | Loan Amount | P&I / mo | Tax / mo | Insurance / mo | HOA / mo | Total / mo | Status |
|---|
Understanding Affordability Rules
The 28% Front-End Rule
Lenders prefer your total monthly housing costs — principal, interest, taxes, and insurance — to be no more than 28% of your gross monthly income. This keeps your housing payment from consuming too large a share of your budget and leaves room for other obligations.
The 43% Back-End Rule
Your total monthly debt — housing plus all recurring debt payments (car loans, student loans, minimum credit card payments) — should stay at or below 43% of gross monthly income. This is the most common hard ceiling for qualified mortgage approval.
Why Both Rules Matter
The lower of the two limits is what actually determines how much house you can afford. If you carry heavy monthly debts, the back-end rule often binds first. Reducing existing debts before buying can meaningfully raise your maximum home price.
Buying Smart: The Evans Legacy Approach
Down Payment Strategies
A 20% down payment eliminates private mortgage insurance (PMI), which can add $100–$300 per month to your payment. However, putting too much down can leave you cash-poor. Some clients use a Cash Value Insurance policy as a flexible reserve — accumulating the down payment tax-deferred, then accessing it as a policy loan when ready to buy.
Rate vs. Price Trade-Offs
A 1% difference in interest rate on a $400,000 loan changes your monthly payment by roughly $220 and the total interest cost by over $70,000 over 30 years. Locking in a lower rate or buying points upfront can be just as powerful as buying a less expensive home.
What This Calculator Doesn't Show
PMI (if down payment is under 20%), closing costs (typically 2–5% of loan), moving expenses, and maintenance reserves are not included. A realistic purchase budget should plan for these on top of the down payment and monthly payment shown here.
Note: These concepts are for educational purposes only and should be reviewed with a licensed financial professional to determine suitability for your individual situation.