How Much House Can You Really Afford?
Knowing your budget before you start house hunting saves time and protects your finances. This calculator uses the industry-standard 28/36 rule to estimate a comfortable home price based on your real numbers.
What Is the 28/36 Rule?
The 28/36 rule is a guideline lenders use to assess how much you can borrow:
- 28% (Front-end ratio): No more than 28% of your gross monthly income should go to housing costs.
- 36% (Back-end ratio): No more than 36% of your gross monthly income should go to total debt, including the mortgage.
Tips to Afford More Home
- Increase your down payment to reduce the loan amount.
- Pay down existing debts to improve your debt-to-income ratio.
- Improve your credit score to qualify for lower interest rates.
- Consider a longer loan term to lower monthly payments.
Frequently Asked Questions
How much house can I afford on a $90,000 salary?
With a $90,000 income, moderate debts, and a healthy down payment, many buyers can afford a home in the $300,000–$400,000 range, depending on interest rates. Use the calculator above for your exact estimate.
Does my down payment affect how much I can afford?
Yes. A larger down payment increases your maximum home price because it reduces the loan amount you need to finance.
Disclaimer: This calculator provides estimates for informational and educational purposes only and does not constitute financial or lending advice. Actual loan approval depends on your lender, credit profile, and other factors. Consult a licensed mortgage professional before making home buying decisions.