Mortgage Affordability Calculator
Auto + student + credit card mins + alimony
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How to use
- 1 Enter your monthly gross income (before tax). Include base salary, bonuses, commissions, RSU vest income (if you have 2+ year history).
- 2 Enter monthly minimum debt payments: car loan, student loans, credit card minimum, personal loan. NOT utilities, food, insurance.
- 3 Enter your down payment amount in dollars.
- 4 Enter expected mortgage rate (Freddie Mac PMMS reference: ~6.30% for 30-year fixed in 2026).
- 5 Click Calculate to see maximum home price (using 28% and 33% front-end DTI scenarios) and resulting monthly PITI payment.
About Mortgage Affordability Calculator
FAQ
Q How much house can I afford on $80,000 income?
Using 28% front-end DTI: max PITI of $1,867/month. With 20% down at 6.30% mortgage rate, that supports a home around $295K. With 10% down, plus PMI, around $250-265K. Add closing costs and reserves; budget for $230K-$270K home purchase.
Q What is the 28/36 rule?
A conservative mortgage affordability guideline: keep mortgage PITI under 28% of gross monthly income (front-end DTI), and total debt (mortgage + car + student loans + credit cards) under 36%. Some lenders allow 33/45 with excellent credit; CFPB caps Qualified Mortgages at 43% back-end. Personal finance experts recommend 28/36 or stricter.
Q How do lenders calculate DTI?
Front-end: PITI ÷ gross monthly income. Back-end: (PITI + all minimum debt payments) ÷ gross monthly income. Income includes base salary, bonus history, commissions, RSU income with 2-year track record, rental income, alimony. Excludes: utilities, food, insurance other than escrowed, voluntary 401(k), one-time bonuses without history.
Q Can I qualify for a mortgage with high student loans?
Yes, if total back-end DTI stays below cap. Student loans on income-driven repayment plans count as the IDR amount, not full standard 10-year. Some Fannie Mae programs allow 1% of balance OR actual IDR payment. FHA may use 0.5% of balance. Strategy: use IDR plan to lower payment ratio for mortgage qualification.
Q Why are some lenders willing to approve higher DTI?
Compensating factors: large cash reserves (12+ months PITI), excellent credit (760+), large down payment (30-40%), substantial assets, stable employment in protected field. Manual underwriting (vs. automated) at portfolio lenders, credit unions, and jumbo lenders allows higher DTI than automated systems.
Q How much should I have saved beyond the down payment?
Most lenders require 2-6 months PITI in reserves post-closing. Beyond that, financial planners recommend: 3-6 month emergency fund (separate), 1-2% of home value annually for maintenance, $5K-$10K furniture/appliances buffer for new homeowners. Total cash needed at closing typically 25-30% of home value when factoring all of this.
Q How do I lower my DTI?
Three options: (1) increase income (raise, bonus, side income, RSU history), (2) reduce monthly debt (pay off car loan, snowball credit cards), (3) refinance high-rate debt to lower payments. Most effective: pay off the highest-payment debt (car loan most common). Some lenders allow paying off balances at closing — bring documentation.
Q Should I max out what the lender approves?
Almost never. Lenders approve based on CFPB minimums and credit risk; they don't consider your retirement savings, kids' college needs, hobbies, travel, or lifestyle. The "house poor" syndrome (technically affordable but no money for anything else) is real. Most fee-only advisors recommend 80% of lender max as the comfortable upper bound.
Official resources
CFPB — Qualified Mortgage Rule
Authoritative CFPB rule on Qualified Mortgages and the 43% back-end DTI cap.
Freddie Mac — Underwriting Standards
Freddie Mac standard underwriting guidelines for conventional mortgages.
FHA — Single Family Loan Information
HUD/FHA loan program rules including 31/43 DTI caps for FHA mortgages.
CFPB — Owning a Home
Consumer Financial Protection Bureau homebuying resource center.