Your income, credit history, the size of your down payment, and your employment and residence history are all factors in how much you can borrow. Depending on circumstances, the amount you can borrow may exceed the amount you can comfortably afford – so it pays to borrow cautiously.
The mortgage affordability calculator helps you to determine how much house you can afford. It analyzes your monthly income, monthly expenses, and specified mortgage rate to calculate the most affordable mortgage for you.

How the Home Affordability Calculator Works

This calculator uses the guidelines for determining how much house you can afford, which are similar to common underwriting criteria that mortgage lenders use.

Your total mortgage payment should be no more than 28 percent of your gross monthly income
Your total debt payments (existing plus the new mortgage) should be no more than 40 percent of your gross monthly income.
This is a simple calculator and does not take into account factors that will increase your monthly housing payment — namely property taxes, homeowners insurance and, if you put down less than 20 percent of the home value, private mortgage insurance (PMI).

Just because you’re approved doesn’t mean you can afford it

Because we didn’t include taxes and insurance, the calculator is conservative enough so that you could likely still be approved for a mortgage at this level after adding in taxes and insurance. That’s our goal: To give you a sense of the maximum home price and mortgage payment for which you might reasonably be approved (with good credit, of course).