Work out how much home you can afford based on income and debt.
A debt-to-income limit caps the housing payment available after other debts, and that payment is converted back into a loan and home price. The down payment scales the result up to a purchase price. Pre-qualifying yourself for an affordable range before shopping prevents overextending on a home that is too expensive.
Mortgage Affordability
Max loan from a payment and rate; home price = loan / (1 - down%)
Max loan from a payment and rate; home price = loan / (1 - down%) A debt-to-income limit caps the housing payment available after other debts, and that payment is converted back into a loan and home price. The down payment scales the result up to a purchase price.
Pre-qualifying yourself for an affordable range before shopping prevents overextending on a home that is too expensive.
This calculator takes 6 inputs: Monthly income, Other monthly debts, Interest rate, Years, Debt limit percent, Down payment. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.