Home Affordability Calculator

How Much Home Can You Afford?

Two columns

Vertical

Horizontal

How Much House Can I Afford

Calculated Result

Name Total

"{{getWooProductName}}" has been added to your cart

Home affordability glossary

Annual Income

This is your annual income before taxes, including salary, commission, social security, interest, and more. Your annual income helps determine how much debt you can take on and what you should allocate for a down payment.

Monthly Debts

Your monthly debts are car payments, student loans, and other recurring personal expenses you make monthly payments on. This number doesn’t include credit card balances you pay off in full each month or the new mortgage you’re getting.

Down Payment

A down payment is what you pay upfront and out-of-pocket towards the purchase of your new home with a mortgage. Some lenders offer loans that require as little as 3% down, but as a rule, the higher your down payment, the lower your rate and monthly payment will be. A down payment of 20% or more will start you off with a healthy amount of equity and allow you to avoid additional lender-required expenses, such as mortgage insurance.

Property Tax

Property taxes vary widely depending on your location. That’s why we factor in where you’re looking to buy a home to help you determine affordability.

Loan Term

The loan term refers to the period of time you’ll be paying off your mortgage if you meet the minimum payment every month. For example, a 30-year fixed mortgage lasts, you guessed it, 30-years. Overall, a loan term affects your monthly payments and the total amount of interest you’ll pay over the life of the loan.

Homeowners Insurance

Your lender will require you to purchase homeowners insurance that covers your mortgage in the event that something happens to your home. Depending on where you live, your lender might have specific requirements on how much and what kind of insurance you need to buy.

HOA Fees

If you buy a home in a Homeowners Association, you’re required to pay monthly association fees that cover the maintenance of your community. These fees can run from $100 to $1,000 each month, so make sure you clarify whether you’ll need to pay them before closing on your new home.

FAQ

Do you have a few questions? That’s okay; most people do. So here’s a quick collection of some of the questions people ask us…

There are four main factors that go into calculating how much you can afford: monthly income, monthly expenses, credit score, and extra savings that can cover closing costs and down payment.

We give you a safe price range that you can comfortably afford based on the information you provide about your savings and expenses. But, make sure you’re also saving up for future life plans, like new additions to family or buying a new car.

At SellYourPropertyFast, we’re dedicated to providing you with the tools to make the home ownership process easy. If you still have questions about whether it's the right time for you to buy a home, we recommend speaking with a licensed financial advisor who can help you assess if now is the right time for you

You’ll need to consider a couple of things before you can answer this question. Where do you want to live and do you see yourself living in this area for more than four years? What’s the purchase price of the home you’re looking at and do you have enough savings for the down payment? What are the current interest rates and term of the loan?

But, the most important question to ask yourself is, are you prepared to take on the full responsibility of homeownership? You need to make sure that you can handle the costs of owning a home, such as property taxes and home maintenance fees in addition to your monthly mortgage payments.

Our home affordability calculator can help you figure out what is healthy range for your situation and budget. From there, you can determine whether renting or buying is the safest financial option.

It’s common advice that you should put 20% down on a home.That way, you’ll have more equity in the home right off the bat and you’ll pay less for your mortgage each month. However, there are lending options that go as low as 3.5% (FHA loans) on down payments. How much you should put down depends on your financial situation, income, and credit score. Use our affordability calculator to find out how much you can afford to pay.

Here’s the equation for mortgage payments on fixed-rate loans:

Monthly Mortgage Payments = P[r(1+r)^n/((1+r)^n)-1)]

P: principal (initial amount borrowed)

i: monthly interest rate. Lender typically list interest rates as a yearly figure. So, if the rate this year is 3.5%, divide that by 12 (months per year), and you’ll get: 0.035/12 = 0.002917

n: # of payments you’ll have over the loan term. On a 30-year fixed rate loan, n = 30 years * 12 months per year, which is 360 payments over the loan term.