Home Affordability Calculator: the lender's number vs. your number

Your situation

Quick start

These eight give you a full answer. Everything else uses typical assumptions; open the groups below to change them.

Household income /yr, before tax

Monthly debt payments car, student, card minimums

Cash for down payment and closing all you have saved

Mortgage rate yearly, from a recent quote

Loan type

Property tax % of price per year; 0.5–2.5% is typical

Home insurance + HOA /mo together

Monthly take-home pay what reaches your bank

Sets the comfortable answer. Lenders look at income before tax; your budget runs on take-home.

Lender limits and the loan

Housing payment limit front-end DTI, % of gross income

All-debts limit back-end DTI, % of gross income

Loan term

County loan limit blank = 2026 standard limit

Credit score sets the PMI rate

PMI rate % of loan per year; blank = typical

FHA charges an upfront premium of 1.75% of the loan (added to the loan) and a yearly premium of 0.50–0.75%, set by HUD. Under 10% down it lasts the life of the loan.

VA funding fee

Cash and closing

Closing costs % of price; 2–5% is typical

Largest down payment % of price

20% avoids PMI on a conventional loan. Cash beyond this stays in the bank.

Reserves left after closing months of payments

Lenders often want 0–6 months of payments in the bank after closing.

Emergency fund to keep not spent on the house

Held back for the comfortable answer. The lender's maximum assumes you'd spend it.

Your budget

Monthly savings you won't give up from take-home

Retirement, college or other savings paid out of take-home pay.

Housing share of what's left after debts and savings

Maintenance % of price per year; 1–2% is typical

Second earner's income /yr, part of the income above

Used only for the "second income lost" stress test. 0 for one earner.

Big repair in year 1 stress test

Price ladder: your number, the rule of thumb, the lender's number

Stress test at the comfortable price

Monthly cost, back-end DTI and money left in each stress scenario
Scenario	Monthly all-in	Change	Back-end DTI	Left each month

Next steps

Year-by-year interest, principal, mortgage insurance and balance
Year	Interest	Principal	Mortgage ins.	Balance	Equity at today's price