See the home price you can afford based on your income, other debts, down payment and mortgage rate. It uses the 28/36 rule that many lenders use as a guide.
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The 28/36 rule
- Housing costs (mortgage, property tax and insurance) up to 28% of gross monthly income.
- All debt payments, including housing, up to 36%.
Example: a household earning $90,000 with $400 of other debts and a $40,000 down payment can afford a home of about $310,800 at 6.5% over 30 years, with a monthly payment of about $2,100.
Frequently asked questions
How can I afford a more expensive home?
Pay down other debts, save a bigger down payment, or find a lower rate. Each raises the price that fits the 28/36 limits.
Does this work in the UK?
UK lenders often lend around 4 to 4.5 times income after affordability checks, so treat this as a guide and set the tax and insurance figure to match your costs. See your payment with the mortgage calculator.