How Much House Can I Afford?

Determining how much house you can afford should be driven by sustainable cash flow, not the maximum a lender will approve. This guide walks through a conservative affordability framework that factors in gross income, existing debts, expected taxes and insurance, and realistic down-payment planning. Start with our Affordability Calculator to get an initial budget, then plug those numbers into the Mortgage Calculator to see monthly payment impacts with taxes and insurance.

Core Inputs

Gross monthly income
Monthly recurring debts
Down payment
Interest rate and term
Tax and insurance assumptions

Practical example

If your gross monthly income is $6,500 and total monthly debts are $800, a conservative housing ratio of 28% suggests a housing budget near $1,820/month. With a 30-year loan at 5% and a 10% down payment, this roughly translates to a purchase price around $300,000—run exact numbers in the calculators for your state and tax assumptions.

FAQ

Should I use a 28% housing ratio or a different rule?

28% is a conservative guideline. Some buyers can accept higher ratios if they have low non-housing debts or strong savings. Use the calculators to test multiple ratios.