How Much House Can You Truly Afford?
Lenders tell you what you can borrow. We tell you what you can actually afford to live in comfortably without becoming house poor.
Income & Debts
Mortgage Details
Hidden Homeownership Costs
Property taxes vary by location. Use this lookup to help estimate your local property tax rate, then enter the percentage above.
Awaiting Details
Fill out the form and click calculate to see your true home affordability estimate.
Understanding Home Affordability
Buying a home is more than just swapping a rent payment for a mortgage payment. Here is why our calculator looks at the full picture.
Lender Approval vs. Your Budget
Lenders use your Debt-to-Income (DTI) ratio to determine your maximum loan amount. They often allow your total debts (including the new mortgage) to reach up to 43% of your gross income. However, lenders do not factor in your groceries, childcare, retirement savings, or lifestyle. Just because you are approved for a certain amount doesn't mean you can comfortably afford it.
Why Hidden Costs Matter
Many buyers focus solely on the principal and interest payment. But property taxes, homeowners insurance, HOA fees, and increased utility costs can easily add 30% to 50% to your base mortgage payment. Ignoring these costs is the fastest way to become "house poor"—where all your money goes to your house, leaving nothing for life.
Breaking Down the Cost Factors
Property Taxes & Insurance
These are usually bundled into your monthly payment through an escrow account. Property taxes vary wildly by county and state, and insurance premiums depend heavily on the home's age, location, and local climate risks.
Maintenance & Repairs
A common rule of thumb is to budget 1% to 2% of the home's purchase price annually for maintenance. Roofs need replacing, HVAC systems break, and appliances fail. As a homeowner, the landlord isn't coming to fix it—you are.
Utilities & HOA
Moving from an apartment to a house usually means a significant jump in utility costs (heating/cooling a larger space, water for a lawn). If you buy in a community with a Homeowners Association, those mandatory monthly fees must be factored into your hard budget.
Explore More Tools
Ready to look at specific home prices? Use theMortgage Calculatorto estimate your monthly payments, see the complete breakdown with the Full Home Cost Calculator, or test your budget safety with the House Poor Risk Calculator.