Mortgage Affordability Calculator
See the home price your income can comfortably support using five underwriting rules (Conservative 28/36, Standard 31/43, Aggressive 36/50, FHA, VA).
- 30yr Fixed6.51%
- 15yr Fixed5.84%
- 5/1 ARM6.47%
- 2yr Fixed5.68%
- 5yr Fixed5.63%
- Tracker3.96%
- Variable6.20%
- 2yr Fixed5.90%
- 5yr Fixed5.54%
- Variable5.95%
Rates shown are national averages for reference only. Actual rates vary by lender, credit score, and LTV. US 30/15-yr figures auto-refresh daily from the Freddie Mac PMMS public dataset.
Inputs
Qualified Mortgage safe harbor.
All rules compared
| Rule | Max price | Loan | Total payment |
|---|---|---|---|
| Conservative (28/36) | $384,457.75 | $334,457.75 | $2,800.00 |
| Standard (31/43) | $422,620.92 | $372,620.92 | $3,100.00 |
| Aggressive (36/50) | $486,226.20 | $436,226.20 | $3,600.00 |
| FHA (31/43) | $422,620.92 | $372,620.92 | $3,100.00 |
| VA (—/41) | $486,226.20 | $436,226.20 | $3,600.00 |
How to use this calculator
- Pick the underwriting rule that matches your comfort level or loan program.
- Enter your gross annual income and total monthly debts (car loans, student loans, minimum credit-card payments).
- Set the down payment you plan to bring to closing.
- Choose your state — the property-tax rate auto-fills from state averages.
- Adjust insurance, HOA, and PMI to match your local market.
- Compare all five rules in the table to see how underwriting choice changes your max price.
How it works
The calculator applies each rule's front-end (housing) and back-end (all debts) DTI caps to your gross monthly income, subtracts your existing monthly debts, and back-solves the maximum loan amount that fits the remaining budget after property tax, insurance, HOA, and PMI (when LTV > 80%).
Because escrow scales with the home price and PMI scales with the loan balance, the solver iterates until the numbers converge. You get a stable, self-consistent maximum for every underwriting rule.
Frequently asked questions
Which rule should I use?
Conservative (28/36) leaves the most breathing room. Standard (31/43) matches the Qualified Mortgage safe harbor most lenders use. Aggressive (36/50) is only appropriate with very stable income and low other expenses. FHA typically caps at 31/43 with compensating factors. VA uses ~41% back-end plus a residual-income test.
Why does the max price change with property tax and insurance?
Escrow eats into the same monthly budget as principal and interest. Higher taxes or insurance means less room for a bigger loan, so the max price you can afford drops.
Does PMI reduce what I can afford?
Yes. If your down payment is under 20%, PMI is added to the monthly payment until you reach 80% LTV. The calculator includes it automatically when LTV exceeds 80%.
Does this guarantee approval?
No. Lenders also look at credit score, employment history, cash reserves, and the specific loan program. Use this as a planning estimate, not a pre-approval.
Should I include bonuses or commission?
Only if you have a documented 2-year history. Underwriters average variable income; a one-time bonus doesn't count.
Can I afford more than the calculator says?
Sometimes — FHA and VA allow higher DTIs with compensating factors like large cash reserves. But borrowing to your absolute maximum leaves no cushion for repairs, job changes, or rate resets.