Mortgages guide
How Much House Can I Afford on My Income?
A useful starting estimate accounts for gross income, existing debt, the mortgage payment, and recurring housing costs.
Set a monthly ceiling
Choose a total debt-to-income scenario and subtract existing monthly debt from the income-based amount. Treat the selected percentage as an assumption, not a universal lender rule.
Include ongoing housing costs
Property taxes, homeowners insurance, mortgage insurance, and HOA dues can use part of the monthly housing budget before principal and interest. Enter local estimates where possible.
Plan for cash beyond the payment
This simplified estimate excludes closing costs, utilities, repairs, and maintenance. Review cash reserves and written lender estimates before making a purchase decision.
Worked example
With $90,000 gross annual income and a selected 36% total DTI, the income-based monthly debt budget is $2,700. After $500 of other monthly debt, $2,200 remains for housing before additional housing-cost estimates.
Frequently asked questions
Does the result guarantee mortgage approval?
No. It is a budgeting estimate and does not apply a lender’s full underwriting review.
Which housing costs should I include?
Estimate taxes, insurance, mortgage insurance, and HOA dues where applicable, then account separately for upkeep and utilities.
Sources and further reading
Try the calculator
Use the Home Affordability Calculator to explore your own numbers with the assumptions shown in the tool.
Related guides
Educational content only; not individualized financial, tax, or legal advice.