Enter your income, monthly debts, down payment and estimated mortgage costs to explore a home price range based on commonly used housing and debt-to-income ratios.
Change the assumptions below to explore different affordability scenarios.
These examples are educational comparisons, not lending limits or recommendations.
| Scenario | Housing Ratio | Total Debt Ratio | Estimated Home Price | Estimated Housing Payment |
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Mortgage affordability is often evaluated by comparing estimated housing expenses and recurring debt payments with gross monthly income.
LoanMathWorks calculates both a housing-payment limit and a total-debt limit, then uses the lower of the two to estimate a home price under the assumptions you enter.
The housing ratio compares estimated housing expenses with gross monthly income. Housing expenses may include principal, interest, property taxes, homeowners insurance, mortgage insurance and HOA dues.
The total debt ratio includes estimated housing expenses plus recurring monthly debts such as auto loans, student loans, credit card minimum payments and other obligations.
Interest rates, property taxes, insurance costs, down payment size and monthly debt can all have a substantial effect on an estimated affordable home price. Even a small change in mortgage rate can affect monthly principal and interest.
No. This calculator provides an educational estimate only. Lenders may evaluate credit history, credit score, employment, assets, reserves, loan program rules, property details and many other factors.
Enter gross household income before taxes and payroll deductions. Only include income you reasonably expect a lender may consider.
Examples may include auto loans, student loans, credit card minimum payments, personal loans, child-support obligations and other recurring debts. Exact lender treatment of debts varies.
Property taxes are part of the monthly housing cost even though they are not mortgage principal or interest. Higher property taxes can reduce the mortgage amount that fits within a particular monthly housing budget.
A larger down payment generally reduces the mortgage amount relative to the purchase price. That can lower principal and interest and may reduce or eliminate estimated mortgage insurance.
There is no single ratio that applies to every borrower or loan program. The default values are provided as general educational examples and can be changed to explore different assumptions.