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Home Affordability Calculator.

How much house can you afford? Enter your income and debts to get a budget based on the 28/36 rule and current mortgage rates.

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Max Home Price

Max Monthly Payment

28/36 Rule Breakdown

28% housing limit (income rule)
36% total debt limit
Room after other debts
Estimated loan amount
Your other monthly debts are reducing your home buying power. Paying down existing debts before buying will increase your maximum home price.

Estimate only. Actual approval depends on credit score, employment history, down payment %, and lender guidelines. Property taxes and insurance not included in payment shown.

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The 28/36 Rule Explained

The 28/36 rule is a classic mortgage qualification guideline used by lenders and financial planners to prevent over-borrowing. Both constraints apply — your monthly housing payment must pass both tests.

28% rule: Housing costs ≤ 28% of gross monthly income
36% rule: Total monthly debt ≤ 36% of gross monthly income
Housing costs include: principal + interest + property taxes + homeowner's insurance (PITI)

Modern DTI Guidelines

Modern lenders often allow higher debt-to-income ratios, but lower is safer:

DTI below 36%: Excellent — most favorable terms
DTI 36–43%: Acceptable — conventional lender standard
DTI 43–50%: Risky — limited lenders, higher rates
DTI above 50%: Difficult to qualify — reduce debts first

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Knowledge Base

How Much House Can You Afford? The 28/36 Rule Methodology.

The 28/36 rule gives you a practical ceiling for home buying: keep your total housing costs under 28% of gross income, and keep all monthly debt payments under 36%. Both limits apply — your maximum payment is whichever number is lower. Higher down payments increase buying power without changing these income-based limits.

The Calculation Branch

Max housing payment = Monthly gross income × 28% | Max total debt payment = Monthly gross income × 36% | Your housing limit = min(28% rule, 36% rule − other monthly debts)

Industrial Standards.

This calculator uses the gross income-based 28/36 rule and converts the maximum monthly payment to a purchase price using the standard amortization formula. The result is your estimated maximum — a conservative guideline, not a guarantee of approval. Actual approval depends on credit score, employment history, loan type, and individual lender guidelines.

In-Depth Analysis & Reference Data

The 28/36 rule uses gross income (before taxes), but your actual take-home pay is what matters for your budget. A household earning $100,000 gross takes home roughly $72,000–$78,000 after taxes. The 28% housing rule allows $2,333/month in housing costs, which represents about 38% of take-home pay — a significant portion. Many financial planners now recommend the 25/25 rule using take-home pay instead, which is more conservative and leaves more room for savings and emergency funds.

Registry Questions & FAQ.

Does PMI affect affordability?

Yes. Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the purchase price. PMI typically costs 0.5–1.5% of the loan amount annually, added to your monthly payment. On a $300,000 loan, PMI of 1% adds $250/month. This reduces the home price you can afford while staying within the 28% guideline. Once you reach 20% equity, you can request PMI cancellation.

What credit score do I need to buy a house?

Conventional loans typically require a minimum 620 credit score. FHA loans allow scores down to 580 (with 3.5% down) or 500 (with 10% down). VA loans have no minimum credit score requirement. The best mortgage rates go to borrowers with scores above 740 — the difference between a 680 and 760 score can mean 0.5–1% higher rate, adding tens of thousands in total interest on a large mortgage.

Estimates for planning. Always confirm against an authoritative source.