Mortgage Affordability Calculator: How Much House Can You Buy?
Enter your home price, down payment, and interest rate to estimate your monthly mortgage payment — including taxes, insurance, and PMI.
How to Use This Mortgage Calculator
Enter the home price or adjust the slider to set your target purchase price.
Set your down payment as a percentage or dollar amount. A higher down payment reduces your monthly cost.
Choose your loan term (10, 15, 20, 25, or 30 years). Shorter terms mean higher payments but less total interest.
Adjust the interest rate based on current market rates or your pre-approval rate.
Expand "Taxes, Insurance & PMI" to include property taxes, home insurance, and private mortgage insurance for a complete picture.
Key Mortgage Terms Explained
Principal
The original amount you borrow from the lender — your home price minus the down payment.
Interest
The cost of borrowing money, expressed as an annual percentage rate (APR). This is what the lender charges for the loan.
PMI (Private Mortgage Insurance)
An insurance premium required when your down payment is less than 20% of the home price. It protects the lender if you default.
Property Tax
An annual tax charged by local governments based on the assessed value of your property. Rates vary by location.
Amortization
The process of spreading your loan payments over time. Early payments go mostly toward interest; later payments go mostly toward principal.
DTI (Debt-to-Income Ratio)
The percentage of your gross monthly income that goes toward debt payments. Lenders typically prefer a DTI below 36%.
Example Calculation
For a $400,000 home with 20% down ($80,000), a 30-year fixed-rate mortgage at 6.5% interest would result in approximately $2,023/month in principal and interest alone. Adding property taxes (~$300/month) and insurance (~$100/month), your total monthly payment would be approximately $2,423.
Frequently Asked Questions
How much house can I afford?
As a general rule, you can afford a home priced at 3-5 times your annual household income. However, this depends on your debt-to-income ratio, down payment, credit score, and current interest rates. Use our affordability check feature to get a personalized estimate.
What is a good mortgage interest rate?
Mortgage rates fluctuate based on market conditions. Historically, rates between 3-7% are common. Your personal rate depends on your credit score, down payment, loan term, and lender. Always compare rates from multiple lenders.
How much should I put down on a house?
While 20% is traditionally recommended (to avoid PMI), many programs allow 3-5% down. FHA loans require as little as 3.5%. A larger down payment reduces your monthly costs and total interest paid.
What is included in a monthly mortgage payment?
A typical mortgage payment includes four components (PITI): Principal (loan repayment), Interest (borrowing cost), Taxes (property taxes), and Insurance (homeowner's insurance). If your down payment is less than 20%, PMI is also included.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on total interest. A 30-year mortgage offers lower monthly payments but costs more over time. Choose based on your budget and financial goals.
How can I lower my monthly mortgage payment?
You can lower your payment by: increasing your down payment, choosing a longer loan term, finding a lower interest rate, buying a less expensive home, or eliminating PMI once you reach 20% equity.
What is an amortization schedule?
An amortization schedule is a table showing each mortgage payment over the life of the loan. It breaks down how much of each payment goes toward principal (reducing your balance) and interest (the cost of borrowing).