MortgageIQ
Today's avg rates:30-yr fixed: 7.09%15-yr fixed: 6.42%FHA 30-yr: 6.89%VA 30-yr: 6.51%Source: Freddie Mac PMMS · Updated weekly

For educational purposes only. Not financial advice. Always consult a licensed mortgage professional. Read disclaimer

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How Much House Can You Afford?

Enter your income and finances for an instant affordability estimate with full payment breakdown.

You can afford homes between $272,000 and $300,000

Your Finances

Annual Household Income$85,000
Monthly Debt Payments$500

Car loans, student loans, credit cards, etc.

$40,000
HOA Fees (optional)$0
Home insurance is estimated at 0.35% of home value annually.

Your Affordability Range

You can afford homes between $272,000 and $300,000

Based on a 6.25% interest rate and 35.1% debt-to-income ratio

Range assumes PMI of approximately $113/month included in payment

Recommended Price

$272,000

$1,773.80/mo · conservative

Maximum Price

$300,000

$1,983.53/mo · upper limit

Monthly Payment Breakdown

Principal
$246.70
Interest
$1,354.17
Property Tax
$182.50
Insurance
$87.50
PMI
$112.67
HOA
$0.00
Total Monthly$1,983.53
Debt-to-Income Ratio

35.1%

Excellent
0%36%43%60%

Your DTI is within ideal range. Lenders typically approve up to 43%.

⚠️ PMI Required
+$113/mo

Your 13.3% down payment triggers PMI. At your credit score (Good (670–739)) and 86.7% LTV, PMI costs approximately $113/month ($1352/year).

Monthly payment without PMI:$1870.86
Monthly payment WITH PMI:$1983.53
PMI removes in approximately 68 months (5 years 8 months) when your loan balance reaches 80% of home value.

How to eliminate PMI:

Additional down payment needed:+$20,000 more

Putting down $60,000 (20%) eliminates PMI and saves $1352/year.

Loan-to-Value (LTV): 86.7%

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Max home price

$272,000 recommended

$300,000

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Frequently Asked Questions

How much house can I afford on my income?▾
Most lenders use the 28/36 rule: spend no more than 28% of gross monthly income on housing, and no more than 36% on total debt. Our calculator applies these guidelines along with your down payment, credit score, and local property taxes to estimate your affordable price range.
What is a good debt-to-income ratio for a mortgage?▾
A DTI below 36% is ideal and typically qualifies for the best rates. Between 36–43% may still qualify with strong credit, while above 43% makes approval difficult. Our calculator shows your DTI with a color-coded indicator so you know where you stand.
How does my credit score affect how much house I can afford?▾
Higher credit scores unlock lower interest rates, which reduces your monthly payment for the same loan amount. A difference of 1–2 percentage points can change your affordable home price by tens of thousands of dollars over a 30-year term.
Should I include property taxes and insurance in my budget?▾
Yes. Your total monthly housing cost includes principal, interest, property taxes, homeowners insurance, and HOA fees. Lenders evaluate your full payment (PITI + HOA), not just the mortgage payment alone.
What down payment do I need to buy a home?▾
While 20% down avoids private mortgage insurance (PMI), many buyers put down 3–10%. A larger down payment reduces your loan amount and monthly payment, letting you afford a more expensive home or keeping payments lower on the same price.

Rate defaults based on Freddie Mac PMMS. Property tax rates from ATTOM Data. FHA MIP rates from HUD.gov. VA funding fees from VA.gov. Last updated June 2026. Learn about our data sources.