How Much House Can I Afford Calculator

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How much mortgage can I qualify for?

Lenders have a pre-qualification process that takes your finances (such as income and debt) into account to determine how much they are willing to lend you. Once the lender has completed a preliminary review, they generally provide a pre-qualification letter that states how much mortgage you qualify for. Get pre-qualified by a lender to confirm your affordability.

The monthly income rule

If you want to focus your search even more, take the time to think about your monthly spending. While the Consumer Financial Protection Bureau (CFPB) reports that banks will qualify mortgage amounts that are up to 43% of a borrower's monthly income, you might not want to take on that much debt.

"You want to make sure that your monthly mortgage is no more than 28% of your gross monthly income," says Reyes.

So if you bring home $5,000 per month (before taxes), your monthly mortgage payment should be no more than $1,400.

"With a general budget, you want to have 50% of your income going toward utilities, mortgage and other essentials," says Reyes. Keeping your mortgage payment under 30% of your income ensures you have plenty of room for the rest of your needs.

About Chase

Chase Bank serves nearly half of U.S. households with a broad range of products. To learn more, visit the Banking Education Center. For questions or concerns, please contact Chase customer service or let us know at Chase complaints and feedback.

Pre-Mortgage Considerations

In addition to the lender’s criteria, consider the following issues when contemplating your ability to pay a mortgage:

1. Income

Are you relying on two incomes to pay the bills? Is your job stable? Can you easily find another position that pays the same, or better, wages if you lose your current job? If meeting your monthly budget depends on every dime you earn, even a small reduction can be a disaster.

2. Expenses

The calculation of your back-end ratio will include most of your current debt expenses, but you should consider future costs like college for your kids (if you have them) or your hobbies when you retire.

3. Lifestyle

Are you willing to change your lifestyle to get the house you want? If fewer trips to the mall and a little tightening of the budget don’t bother you, applying a higher back-end ratio might work out fine. If you can’t make any adjustments or already have multiple credit card account balances—you might want to play it safe and take a more conservative approach in your house hunting.

4. Personality

No two people have the same personality, regardless of their income. Some people can sleep soundly at night knowing that they owe $5,000 per month for the next 30 years, while others fret over a payment half that size. The prospect of refinancing the house to afford payments on a new car would drive some people crazy while not worrying others at all.

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Factors that affect how much you can borrow

These factors can influence the loan amount you’re eligible for.

  • Income. Lenders want to make sure you have regular, monthly income. Having a full-time job can help you qualify for a larger loan than a freelancer, even if the freelancer makes more money on average.
  • Debts. You must have enough room in your monthly budget to afford loan repayments on the amount you want to borrow, plus interest.
  • Credit score. The highest loan amounts require excellent credit. You typically need a score of 760 or higher to qualify for the highest loan amount, according to experts.
  • Available loan amounts. Typically, most lenders offer personal loans up to $50,000 — although you can find loans up to $100,000.

Other factors like your level of education and career can also affect the amount you’re able to qualify for, depending on the lenderr.

3 ways to qualify for a larger loan To make the most out of your loan, take the time to strengthen your application and consider these three tactics to qualify for more.Go for a longer term. Long terms reduce your monthly loan cost. But watch out — this can make your loan more expensive. Apply with a cosigner. Lenders sometimes consider your combined income with a cosigner or coborrower — especially if they’re your spouse. If your lender only considers one income, a cosigner that has a higher income can still help you qualify for more. Pay off your debts. Paying off credit card debt and student loans to lower your DTI and increase your credit score, which both help you qualify for a higher loan amount.

How Lenders Decide

Many different factors go into the mortgage lender’s decision on homebuyer affordability, but they boil down to income, debt, assets, and liabilities. A lender wants to know how much income an applicant makes, how many demands there are on that income, and the potential for both in the future—in short, anything that could jeopardize its ability to get paid back. Income, down payment, and monthly expenses are generally base qualifiers for financing, while credit history and score determine the rate of interest on the financing itself.

What home financing basics should I understand?

If you obtain home financing, you’ll repay more than the amount you borrowed because the amount you repay is determined by several factors, including the interest and loan amount. Here are some terms you should understand.

Interest rate 

  • The interest rate is the percentage of your loan amount we charge you to borrow money.
  • Interest rates are based on current market conditions, your credit score, down payment, and the type of mortgage you choose. Check today’s rates.

Discount Points

  • One point equals 1% of your mortgage amount; however, 1 point will typically reduce the interest rate by less than 1%. If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments.
  • Points are usually tax deductible. Consult a tax advisor regarding tax deductibility. On refinances you may be able to finance points as part of your mortgage amount. 

Origination charge

  • On a mortgage, this amount includes charges (other than discount points) that all loan originators (lenders and brokers) involved will receive for originating the loan.
  • The origination charge covers items including fees, document preparation, and underwriting costs, and other expenses.
  • On refinances, if you qualify, you may be able to finance the origination charge as part of your loan amount.

Loan term

  • Your loan term is the amount of time you have to pay off your mortgage balance.
  • Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates.
  • If you pay off your mortgage balance within a shorter term, you may pay less in total interest than with a longer-term mortgage. 

Remember that interest rates only tell part of the story. The cost of a mortgage is reflected by the interest rate, discount points, fees, and origination charges. This cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR lets you compare mortgages of the same dollar amount by considering their  annual cost.

Monthly mortgage payment

Your monthly mortgage payment is typically made up of four parts:

  • Principal. The part of your monthly payment that reduces the outstanding balance of your mortgage.
  • Interest. The part of your monthly payment that goes toward the cost of borrowing the money. 
  • Taxes. The part of your monthly payment that goes toward property taxes charged by your local government. We typically collect a portion of these taxes in every mortgage payment and hold the funds in an escrow account for tax payments made on your behalf as they become due.
  • Insurance. The part of your monthly payment that pays for homeowners or hazard insurance, which provides protection against losses from property damage due to wind, fire, or other risks. Like taxes, insurance costs are usually collected and paid from an escrow account.

Depending upon your property location, property type, and loan amount, you may have other monthly or annual expenses such as mortgage insurance, flood insurance, or homeowner association fees.

Video – The components of a mortgage payment

Watch this video to understand what makes up a typical mortgage payment – principal, interest, taxes, and insurance – and how they can change over the life of the loan. Check today’s rates to see our current interest rates.  

Borrowing power definitions

Not sure what a term in the calculator means? These definitions might help.

Loan details

  • Term. How long you have to pay back your loan. This calculator asks for a loan term in years.
  • Interest rate. The cost of borrowing a loan. It can be either variable or fixed, and most lenders use simple interest to determine how much you owe.
  • Application type. This refers to how many people are signing for this loan. You can either select Single for solo applications or Joint if you’re applying with another person.


  • Gross income. Any money you earn that you pay income taxes on, before taxes apply. This excludes untaxed income like government benefits or money you earn from renting property.
  • Untaxed income. Funds you regularly receive that you don’t need to pay taxes on. For example, pensions, Social Security, disability and child support all count as untaxed income.
  • Rental income. This is any amount you earn from renting an apartment, home or any other personal property, before taxes.


  • Other loans. The amount of any loans in your name — like personal loans and student loans — excluding car loans.
  • Car loan repayments per month. If you owe money on your car loan, this refers to your monthly loan repayment.
  • Total credit card limit. The credit limit on each credit card in your name, added up.
  • Number of dependents. The number of people you declare as a dependent on your taxes.


  • Monthly repayments. How much you could potentially pay each month if you took out a loan of the amount you might qualify for with rates and terms you entered under Loan Details.
  • Total interest payable. The amount you’d pay in interest on your loan. If you entered an APR, this is your total loan cost including interest and fees.

The Next Step

If you feel you’re ready for a mortgage, the next step is to get a loan preapproval. Preapprovals tell you how much money you can get in a home loan and can help you begin shopping for your perfect property. Create a plan of action and put it into place today if you think you need more time to improve your finances before you apply.

Why Use The Maximum Mortgage Calculator?

Once you input your monthly obligations and income, the Maximum Mortgage Calculator will calculate the maximum monthly mortgage payment (and total mortgage amount) that you can afford, based on your current financial situation. This calculator will also help to determine how different interest rates and levels of personal income can have an effect on how much of a mortgage you can afford.


A report made by a qualified person to estimate the value of a property, often used to help determine an appropriate loan limit. If you’re purchasing, the appraised value usually needs to be equal to or greater than the home’s purchase price.