How Much House Can I Afford Calculator

Please replace your browser

We do not help this browser model anymore. Utilizing an up to date model will assist shield your accounts and supply a greater expertise. 

Update your browser


How a lot mortgage can I qualify for?

Lenders have a pre-qualification process that takes your funds (corresponding to earnings and debt) into consideration to find out how a lot they’re prepared to lend you. As soon as the lender has accomplished a preliminary assessment, they often present a pre-qualification letter that states how a lot mortgage you qualify for. Get pre-qualified by a lender to confirm your affordability.

The month-to-month earnings rule

If you wish to focus your search much more, take the time to consider your month-to-month spending. Whereas the Shopper Monetary Safety Bureau (CFPB) reports that banks will qualify mortgage quantities which might be as much as 43% of a borrower's month-to-month earnings, you may not wish to tackle that a lot debt.

"You wish to make it possible for your month-to-month mortgage is not more than 28% of your gross month-to-month earnings," says Reyes.

So should you convey dwelling $5,000 per thirty days (earlier than taxes), your month-to-month mortgage fee must be not more than $1,400.

"With a basic finances, you wish to have 50% of your earnings going towards utilities, mortgage and different necessities," says Reyes. Conserving your mortgage fee underneath 30% of your earnings ensures you’ve got loads of room for the remainder of your wants.

About Chase

Chase Financial institution serves practically half of U.S. households with a broad vary of merchandise. To be taught extra, go to the Banking Education Center. For questions or considerations, please contact Chase customer service or tell us at Chase complaints and feedback.

Pre-Mortgage Issues

Along with the lender’s standards, think about the next points when considering your capacity to pay a mortgage:

1. Revenue

Are you counting on two incomes to pay the payments? Is your job secure? Are you able to simply discover one other place that pays the identical, or higher, wages should you lose your present job? If assembly your month-to-month finances is determined by each dime you earn, even a small discount generally is a catastrophe.

2. Bills

The calculation of your back-end ratio will embrace most of your present debt bills, however it’s best to think about future prices like school on your children (you probably have them) or your hobbies while you retire.

3. Way of life

Are you prepared to alter your way of life to get the home you need? If fewer journeys to the mall and slightly tightening of the finances don’t hassle you, making use of a better back-end ratio would possibly work out high-quality. If you happen to can’t make any changes or have already got a number of bank card account balances—you would possibly wish to play it secure and take a extra conservative strategy in your home searching.

4. Persona

No two individuals have the identical character, no matter their earnings. Some individuals can sleep soundly at night time understanding that they owe $5,000 per thirty days for the subsequent 30 years, whereas others fret over a fee half that measurement. The prospect of refinancing the home to afford funds on a brand new automotive would drive some individuals loopy whereas not worrying others in any respect.

Associated Assets

Viewing 1 – 3 of three

Rent Vs. Buy: Calculator, Facts And Pros And Cons Of Each Home Buying – 6-minute read Miranda Crace – July 05, 2022 Use our rent vs. buy calculator and weigh the pros and cons of each to decide which is the right choice for you. Read More

Mortgage Preapprovals Vs. Prequalifications: Which Should You Get? Home Buying – 5-minute read Victoria Araj – July 29, 2022 Not sure of the difference between mortgage prequalification and preapproval? Find out everything you need to know right here. Read More

A Information To First-Time Dwelling Purchaser Applications, Loans And Grants Dwelling Shopping for – 7-minute learn Victoria Araj – July 21, 2022 Seeking to purchase your first dwelling? See should you qualify for these first-time dwelling purchaser packages, mortgage choices and grants. Learn Extra

Components that have an effect on how a lot you possibly can borrow

These elements can affect the mortgage quantity you’re eligible for.

  • Revenue. Lenders wish to be sure you have common, month-to-month earnings. Having a full-time job will help you qualify for a bigger mortgage than a freelancer, even when the freelancer makes more cash on common.
  • Money owed. You could have sufficient room in your month-to-month finances to afford mortgage repayments on the quantity you wish to borrow, plus curiosity.
  • Credit score rating. The very best mortgage quantities require wonderful credit score. You usually want a rating of 760 or greater to qualify for the very best mortgage quantity, based on consultants.
  • Obtainable mortgage quantities. Sometimes, most lenders provide private loans as much as $50,000 — though you’ll find loans as much as $100,000.

Different elements like your degree of training and profession also can have an effect on the quantity you’re capable of qualify for, relying on the lenderr.

3 methods to qualify for a bigger mortgage To take advantage of out of your mortgage, take the time to strengthen your software and think about these three ways to qualify for extra.Go for a long term. Lengthy phrases cut back your month-to-month mortgage value. However be careful — this will make your mortgage costlier. Apply with a cosigner. Lenders generally think about your mixed earnings with a cosigner or coborrower — particularly in the event that they’re your partner. In case your lender solely considers one earnings, a cosigner that has a better earnings can nonetheless provide help to qualify for extra. Repay your money owed. Paying off bank card debt and pupil loans to decrease your DTI and improve your credit score rating, which each provide help to qualify for a better mortgage quantity.

How Lenders Determine

Many various elements go into the mortgage lender’s choice on homebuyer affordability, however they boil right down to earnings, debt, assets, and liabilities. A lender needs to know the way a lot earnings an applicant makes, what number of calls for there are on that earnings, and the potential for each sooner or later—in brief, something that would jeopardize its capacity to receives a commission again. Revenue, down fee, and month-to-month bills are usually base qualifiers for financing, whereas credit history and rating decide the speed of curiosity on the financing itself.

What dwelling financing fundamentals ought to I perceive?

If you happen to receive dwelling financing, you’ll repay greater than the quantity you borrowed as a result of the quantity you repay is set by a number of elements, together with the curiosity and mortgage quantity. Listed here are some phrases it’s best to perceive.

Rate of interest 

  • The rate of interest is the proportion of your mortgage quantity we cost you to borrow cash.
  • Rates of interest are primarily based on present market circumstances, your credit score rating, down fee, and the kind of mortgage you select. Check today’s rates.

Low cost Factors

  • One level equals 1% of your mortgage quantity; nevertheless, 1 level will usually cut back the rate of interest by lower than 1%. If you happen to qualify, you might be able to pay a number of factors to decrease your rate of interest. A decrease rate of interest means decrease month-to-month mortgage funds.
  • Factors are often tax deductible. Seek the advice of a tax advisor concerning tax deductibility. On refinances you might be able to finance factors as a part of your mortgage quantity. 

Origination cost

  • On a mortgage, this quantity contains prices (aside from low cost factors) that each one mortgage originators (lenders and brokers) concerned will obtain for originating the mortgage.
  • The origination cost covers objects together with charges, doc preparation, and underwriting prices, and different bills.
  • On refinances, should you qualify, you might be able to finance the origination cost as a part of your mortgage quantity.

Mortgage time period

  • Your mortgage time period is the period of time it’s important to repay your mortgage stability.
  • Shorter mortgage phrases usually imply greater month-to-month mortgage funds, however usually have decrease rates of interest.
  • If you happen to repay your mortgage stability inside a shorter time period, it’s possible you’ll pay much less in complete curiosity than with a longer-term mortgage. 

Do not forget that rates of interest solely inform a part of the story. The price of a mortgage is mirrored by the rate of interest, low cost factors, charges, and origination prices. This value is named the annual proportion fee (APR), which is often greater than the rate of interest. The APR helps you to examine mortgages of the identical greenback quantity by contemplating their  annual value.

Month-to-month mortgage fee

Your month-to-month mortgage fee is often made up of 4 elements:

  • Principal. The a part of your month-to-month fee that reduces the excellent stability of your mortgage.
  • Curiosity. The a part of your month-to-month fee that goes towards the price of borrowing the cash. 
  • Taxes. The a part of your month-to-month fee that goes towards property taxes charged by your native authorities. We usually acquire a portion of those taxes in each mortgage fee and maintain the funds in an escrow account for tax funds made in your behalf as they develop into due.
  • Insurance coverage. The a part of your month-to-month fee that pays for householders or hazard insurance coverage, which supplies safety in opposition to losses from property harm resulting from wind, hearth, or different dangers. Like taxes, insurance coverage prices are often collected and paid from an escrow account.

Relying upon your property location, property sort, and mortgage quantity, you will have different month-to-month or annual bills corresponding to mortgage insurance coverage, flood insurance coverage, or house owner affiliation charges.

Video – The parts of a mortgage fee

Watch this video to grasp what makes up a typical mortgage fee – principal, curiosity, taxes, and insurance coverage – and the way they’ll change over the lifetime of the mortgage. Check today’s rates to see our present rates of interest.  

Borrowing energy definitions

Undecided what a time period within the calculator means? These definitions would possibly assist.

Mortgage particulars

  • Time period. How lengthy it’s important to pay again your mortgage. This calculator asks for a mortgage time period in years.
  • Rate of interest. The price of borrowing a mortgage. It may be both variable or mounted, and most lenders use simple interest to find out how a lot you owe.
  • Software sort. This refers to how many individuals are signing for this mortgage. You may both choose Single for solo functions or Joint should you’re making use of with one other individual.


  • Gross earnings. Any cash you earn that you simply pay earnings taxes on, earlier than taxes apply. This excludes untaxed earnings like authorities advantages or cash you earn from renting property.
  • Untaxed earnings. Funds you usually obtain that you simply don’t have to pay taxes on. For instance, pensions, Social Safety, incapacity and little one help all rely as untaxed earnings.
  • Rental earnings. That is any quantity you earn from renting an condominium, dwelling or some other private property, earlier than taxes.


  • Different loans. The quantity of any loans in your identify — like private loans and pupil loans — excluding automotive loans.
  • Automotive mortgage repayments per thirty days. If you happen to owe cash in your automotive mortgage, this refers to your month-to-month mortgage compensation.
  • Complete bank card restrict. The credit score restrict on every bank card in your identify, added up.
  • Variety of dependents. The variety of individuals you declare as a dependent in your taxes.


  • Month-to-month repayments. How a lot you could possibly doubtlessly pay every month should you took out a mortgage of the quantity you would possibly qualify for with charges and phrases you entered underneath Mortgage Particulars.
  • Complete curiosity payable. The quantity you’d pay in curiosity in your mortgage. If you happen to entered an APR, that is your complete mortgage value together with curiosity and charges.

The Subsequent Step

If you happen to really feel you’re prepared for a mortgage, the subsequent step is to get a loan preapproval. Preapprovals let you know how a lot cash you may get in a house mortgage and will help you start procuring on your excellent property. Create a plan of motion and put it into place at present should you suppose you want extra time to enhance your funds earlier than you apply.

Why Use The Most Mortgage Calculator?

When you enter your month-to-month obligations and earnings, the Most Mortgage Calculator will calculate the utmost month-to-month mortgage fee (and complete mortgage quantity) that you may afford, primarily based in your present monetary scenario. This calculator may even assist to find out how totally different rates of interest and ranges of private earnings can impact how a lot of a mortgage you possibly can afford.


A report made by a professional individual to estimate the worth of a property, usually used to assist decide an acceptable mortgage restrict. If you happen to’re buying, the appraised worth often must be equal to or larger than the house’s buy value.