House Affordability Calculator - Based on Income & DTI

Mortgage Payment Amortization Schedule

How Do I Calculate How Much I Qualify for a Home Loan?

Rough calculation steps:

1. Calculate your maximum allowable monthly debt payment using your income and DTI (e.g., 36% × monthly income).

2. Subtract your existing monthly debts (car loans, credit cards, etc.) from that number to find your maximum mortgage payment.

3. Use a mortgage calculator with that payment, interest rate, and loan term to estimate loan amount.

For example, if your gross monthly income is $6,000 and your lender allows 36% DTI:

$6,000 × 0.36 = $2,160 maximum total debt payments

If your current debts total $500/month, your maximum mortgage payment is $2,160 - $500 = $1,660.

Using a mortgage calculator with $1,660/month, 4% interest, and 30-year term, you might qualify for about $347,000.

For precise qualification, consult with lenders or use the calculator on this page.

With an Annual Income of $80,000, How Much Can I Afford in a House?

If you're looking at a 30-year term with 20% down, a fixed rate of 6%, property tax at 1.5% per year, and home insurance at 0.5% per year, then based on the 28/36 rule, you can afford a house worth about $288,885.

References

This calculator's methodologies and guidelines are based on information from authoritative sources:

Government Resources:

• Federal Housing Administration (FHA): HUD.gov - FHA Loan Programs
• Department of Veterans Affairs: VA.gov - Home Loan Programs
• Consumer Financial Protection Bureau: ConsumerFinance.gov - Owning a Home
• Federal Trade Commission: Consumer.FTC.gov - Homes and Mortgages
• Federal Reserve: FederalReserve.gov - Household Debt Research
• U.S. Census Bureau: Census.gov - Housing Statistics