Banks will approve you for more than you should spend. This calculator uses the 28/36 rule, the same standard conservative lenders and financial planners use, to tell you what you can actually afford without stretching yourself thin.
Front-End Ratio
0%
Limit: 28% of gross
Back-End Ratio
0%
Limit: 36% of gross
Front-end ratio is your housing costs alone as a percentage of gross income (capped at 28%). Back-end ratio is housing plus all other debt payments (capped at 36%). The calculator uses whichever is more restrictive.
PMI applies. Your down payment is less than 20% of the home price, so private mortgage insurance is included in the estimate (~0.7% of loan amount per year). PMI adds $0/month. Once you reach 20% equity, you can request to remove it.
Monthly Payment Breakdown
Principal & Interest
$0
Property Tax
$0
Home Insurance
$0
Private Mortgage Insurance
$0
Total Monthly Housing
$0
Key Numbers
Monthly gross income
$0
Existing monthly debts
$0
Down payment percentage
0%
Binding constraint
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A more comfortable target
$0
The number above is your ceiling, not your target. A home at 80% of your maximum keeps your budget flexible for maintenance, repairs, and life. The best homeowners are the ones who aren't house-poor.
What the banks won't tell you
Lenders will approve you for the maximum. They profit from larger loans. This calculator uses the 28/36 rule as a hard ceiling, but in practice, keeping your housing costs closer to 25% of gross income gives you room to save, invest, and absorb unexpected expenses. A home should build wealth, not consume it.