Find out exactly how much house you can afford based on your income and debts.
The most widely used guideline is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs, and no more than 36% on total debt. This calculator uses the 36% back-end DTI limit to find your maximum affordable home price.
Beyond the mortgage payment, homeowners should budget for property taxes (0.5–2.5% of home value annually), homeowners insurance ($800–2,000/year), HOA fees if applicable, and maintenance (budget 1% of home value per year for repairs and upkeep).
A larger down payment reduces your loan amount, monthly payment, and eliminates PMI at 20%+. It also signals financial strength to lenders, potentially qualifying you for better interest rates.