Affordability Calculator




Clicking the submit button will allow you to download a pdf of your calculations


Front-End Ratio: 28%. This means your monthly housing expenses, including your mortgage payment, property taxes, homeowner’s insurance, and PMI (if applicable), should not exceed this percentage.

Back-End Ratio: 36%. This means your total monthly debt payments, including housing expenses and other debts like car loans and credit card payments, should not exceed this percentage. This is the amount used on this form to calculate affordability.

Down Payment

Enter the down payment you plan to contribute toward the purchase of your home. If your down payment is less than 20%, you may be required to pay mortgage insurance.

Frequently Asked Questions
Here are some of the most frequently asked questions about home affordability and why it matters.
How is Your Mortgage Interest Rate Determined

The foundation of home affordability hinges on your mortgage interest rate. When evaluating your ability to afford a home, it’s crucial to consider the estimated interest rate associated with your mortgage.

  1. Your debt-to-income ratio.
  2. Your track record of timely bill payments.
  3. Verification of a stable income source.
  4. The extent of your down payment, along with additional reserves for closing expenses and other costs associated with relocating to a new residence.

Once lenders ascertain your qualification for a mortgage, they proceed to determine the interest rate applicable to your loan. Your credit score plays a significant role in shaping the mortgage rate you’ll receive.

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

What is home affordability?
This question seeks to understand the concept of home affordability and how it is determined.
What is a debt-to-income ratio and CALCULATE IT
This question aims to clarify the significance of the debt-to-income ratio in the home affordability equation.
Debt to Income (DTI)

What role does my credit score play in determining my home affordability?
Understanding how credit scores affect the mortgage interest rate and, consequently, home affordability is a common concern.
How do lenders assess my eligibility for a mortgage?
People often want to know the criteria and process that lenders use to evaluate whether they qualify for a mortgage.
Are there any government programs or incentives to help with home affordability?
This question is relevant for individuals seeking information on available programs or assistance for homebuyers.
What is the ideal percentage of my income to allocate to housing costs?
Homebuyers may inquire about recommended guidelines for the portion of their income that should go towards housing expenses.
How can I improve my home affordability?
This question focuses on strategies and tips for making homeownership more affordable, such as improving credit scores or saving for a larger down payment.
What is the relationship between interest rates and monthly mortgage payments?
This question delves into how changes in interest rates can impact the monthly cost of a mortgage and, consequently, home affordability.
Should I consider adjustable-rate mortgages (ARMs) for greater affordability?
Prospective homebuyers may want to know about the advantages and disadvantages of adjustable-rate mortgages compared to fixed-rate mortgages in terms of affordability.
What are the common pitfalls to avoid when assessing home affordability?
This question addresses potential mistakes or misconceptions that individuals should be aware of when determining their home affordability.
Is it better to rent or buy a home in terms of affordability?
Some people may be unsure whether renting or buying is the more cost-effective option, and this question explores the factors to consider.
How do property taxes and insurance affect home affordability?
Homebuyers may inquire about the impact of property taxes and homeowners insurance on their overall housing costs.
Can I refinance my mortgage to improve affordability?
This question examines the possibility of refinancing as a strategy to make homeownership more affordable, especially when interest rates change.


In order to receive a helpful estimate, it’s important that you input accurate information.

Results in no way indicate approval or financing of a mortgage loan. Contact a mortgage lender to understand your personalized financing options.

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Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

Keep in mind that mortgage terms and conditions can vary, so it’s crucial to work closely with a qualified mortgage professional to tailor your mortgage to your unique financial situation and homeownership goals

The frequently asked questions here, provide valuable information for individuals looking to understand and navigate the complexities of home affordability.