Real Estate Toolkit

Home Affordability

Calculate exactly how much house you can afford based on the standard 28/36 lender rule. Find your budget before you shop.

Financial Profile

$
$
$

Estimated Buying Power

$409,159

Max Payment: $2,333/mo

Max Loan Amount

$369,159

Principal from lender

Affordability Factor

Income Driven: Your salary is the primary factor setting your budget.

Current DTI: 34.0%

?The 28/36 Rule Explained

Lenders typically use the 28/36 Rule to determine how much they are willing to lend. It consists of two ratios:

  • 28%: Your total monthly housing expenses (mortgage, insurance, taxes) should not exceed 28% of your gross monthly income.
  • 36%: Your total monthly debt payments (housing plus car loans, student loans, etc.) should not exceed 36% of your gross monthly income.

Lenders generally offer a loan based on whichever of these two numbers is lower.

Ways to Increase Budget

Lower Interest Rates

Even a 0.5% drop in interest rates can add tens of thousands of dollars to your buying power.

Reduce Monthly Debt

Paying off a car loan or student debt lowers your DTI ratio, allowing for a higher mortgage.

Higher Down Payment

Every dollar added to your down payment directly increases your home price budget 1-to-1.

Extended Terms

A 30-year loan has lower monthly payments than a 15-year loan, increasing your maximum home price.

Beyond the Mortgage

This tool estimates what a lender might give you. It doesn’t account for property taxes, homeowners insurance, or HOA fees, which can add hundreds to your monthly cost. Always include a "buffer" in your personal budget for home maintenance.