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How much house can i afford

How much house can i afford

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You can use this mortgage affordability calculator as a guide to help you estimate the property price you can afford based upon your income and debt load. (Naturally, a lender can provide more exact figures.)

It's easy!

Step 1 - List income, expenses, and available funds
Simply enter amounts for your annual income, monthly debts, and the funds you have available for a down payment.

Step 2 - Estimate the loan terms, property taxes, and insurance:

  • Enter the interest rate and loan term you are considering.
  • Next, estimate the annual property taxes and property insurance fees you expect for this property. (To make it easier, these are expressed in percentages as opposed to actual dollar amounts. Taxes and insurance are dependent upon the property's location, but the typical range is about 0.5% to about 2.5% for taxes and 0.5% to 1% for insurance.)

Step 3 - Select Front-End and Back-End Ratios:
Select front-end and back-end ratios that would be appropriate to your situation. (The standard ratios - 28% front-end and 36% back-end - are used by most lenders. But lenders may offer other ratio combinations such as 33% front-end and 38% back-end as well.)

  • Choose a front-end ratio percentage to reflect how much of your monthly gross income is available to be used to pay your mortgage debt (typically 28% to 33%).
  • Select a back-end ratio to reflect how much of your monthly gross income can be used to pay all of your regular monthly obligations (typically 36% to 38%).


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