Mortgage Well

Mortgage Affordability Calculator

See an estimated price range you might be able to afford given your income, debts, down payment, and DTI comfort. Three tiers — conservative to stretch — with full assumptions disclosed.

Affordability Estimate

Generated · Assumption set 2026-04-30

Cars, student loans, credit cards, child support

Loan term

Common defaults: 36% conservative, 43% qualified mortgage cap

Advanced assumptions

Estimated affordable home price

$418,104.88/mo

Moderate tier · adjustable below

Loan amount
$358,105
Total monthly payment
$3,000.00
Front-end DTI
30.00%
Housing ÷ income
Back-end DTI
36.00%
Limit 36.00%

This is an educational range, not a pre-qualification or loan approval.

Affordability tiers

Conservative

Max home price$362,919
Loan amount$302,919
Monthly payment$2,550.00
Back-end DTI31.50%

Moderate

Max home price$418,105
Loan amount$358,105
Monthly payment$3,000.00
Back-end DTI36.00%

Stretch

Max home price$454,897
Loan amount$394,897
Monthly payment$3,300.00
Back-end DTI39.00%

Assumptions used

Assumption set 2026-04-30

Gross monthly income
$10,000user input
Monthly debts
$600user input
Down payment
$60,000user input
Annual interest rate
6.50%user input
Loan term
30 yearsuser input
Back-end DTI cap
36.00%user input
Property tax rate
1.25%user input
Homeowners insurance rate
0.35%user input
PMI rate
0.60%user input
Monthly HOA
$0user input

How this calculator works

Affordability is driven by your debt-to-income ratio (DTI): lenders compare your housing payment plus other debts against your gross income. We estimate the highest home price whose total monthly payment (including taxes, insurance, HOA, and PMI when applicable) stays under your chosen DTI cap.

Reviewed for calculation accuracy and clarity by Mortgage Well calculation team ·

When to use this

  • You're starting a home search and want a realistic price ceiling.
  • You want to see how raising your down payment or paying down debts changes your range.
  • You're stress-testing what happens if your DTI cap is more conservative than the lender allows.

Methodology

We solve for the maximum home price whose total PITI fits inside your back-end DTI cap. Because property taxes, insurance, and PMI scale with home price, we binary-search across price candidates and recompute the full payment for each.

back_end_DTI = (housing_payment + other_debts) / gross_monthly_income

For each candidate home price:
  loan = price - down_payment
  PITI = P&I + tax(price) + insurance(price) + HOA + PMI(loan, price)
  accept if (PITI + other_debts) / income <= cap

Assumptions

  • Gross monthly income before taxes and benefits.
  • Property tax and homeowners insurance are estimated as a percent of home price (configurable).
  • PMI applies whenever loan-to-value is over 80%.
  • Front-end and back-end DTI are illustrative; actual lender ratios depend on credit, reserves, and loan program.

Example

A $10,000/month income with $600 of monthly debts and a 36% back-end DTI cap leaves about $3,000 for housing each month. After taxes, insurance, and PMI, that supports a home around $400,000 with a $60,000 down payment at 6.5%.

Frequently asked

Is this a pre-approval?
No. This is an educational estimate. A lender will evaluate your credit, employment, assets, and reserves before issuing a pre-approval or Loan Estimate.
Why three tiers?
Conservative leaves more cash flow for savings and emergencies. Moderate spends what your DTI cap allows. Stretch is what you might qualify for — not necessarily what's wise.
Does the DTI cap include the new mortgage?
Yes. Back-end DTI counts the new total housing payment plus your other monthly debts.

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Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.