Find your maximum home price based on income, debts, and down payment. Get your front-end and back-end DTI ratio plus full monthly cost breakdown.
| Annual Income | Max Monthly Housing | Max Home Price (6.8%, 10% down) |
|---|---|---|
| $60,000 | $1,400/mo | ~$180,000 |
| $80,000 | $1,867/mo | ~$245,000 |
| $100,000 | $2,333/mo | ~$310,000 |
| $150,000 | $3,500/mo | ~$470,000 |
| $200,000 | $4,667/mo | ~$630,000 |
Estimates assume 28% front-end DTI, 30-year fixed at 6.8%, 10% down, $400/mo property tax+insurance. Actual results vary.
The most widely used home affordability guideline is the 28/36 rule. Your monthly housing costs (mortgage principal + interest + property taxes + homeowner's insurance) should not exceed 28% of your gross monthly income. Your total debt payments — housing plus car loans, student loans, credit cards, and other obligations — should not exceed 36%. Lenders use these ratios to evaluate mortgage applications, though FHA loans may allow up to 43–50% back-end DTI in some cases.
The mortgage payment is just the starting point. A realistic monthly housing budget includes: property taxes (0.5–2.5% of home value annually depending on your state), homeowner's insurance ($100–$200/month typically), HOA fees if applicable ($200–$600/month in many communities), PMI if you put down less than 20% ($80–$250/month on a typical loan), and maintenance — budget 1% of the home's value per year for repairs and upkeep. On a $400,000 home, that's $4,000/year or $333/month for maintenance alone.
At 2026 mortgage rates, a 1% difference in interest rate on a $350,000 30-year loan changes the monthly payment by approximately $210 — and the total interest paid by over $75,000. Improving your credit score from 680 to 740+ can shave 0.5–0.75% off your rate. Getting one additional competing lender quote can save 0.25–0.5%. These aren't small differences — they're the difference between affording a home comfortably or being house-poor.
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