How much house can I afford?

The affordability equation: Affordability is determined by your debt-to-income (DTI) ratio, your down payment, and current interest rates. Those three inputs produce the monthly payment you can carry and the price range that comes with it.

The equation is simple to understand and personal to run, because every buyer brings a different mix of income, debt, and savings to it.

Beyond the mortgage payment: The mortgage payment is only part of what a home costs each month, and affordability is not honest without the rest: property taxes, homeowner's insurance, HOA fees if the property has them, and the lifestyle expenses that come with where you live. Utilities, maintenance, and the way your daily life changes with a home all belong in the picture.

Buyers who budget for the whole monthly cost, not just the principal and interest, are the ones who buy comfortably and stay comfortable.

DTI, explained: Your debt-to-income ratio compares your monthly debts to your gross monthly income, and lenders use it to gauge how much of your income can responsibly go to housing. Keeping other debts low, like car payments and credit cards, directly improves the housing number you can carry.

It is one of the levers you control: paying down debt before you buy can raise the price you can afford without raising your income.

The number you qualify for vs. the number you can live with: There is a difference between what a lender will approve and what you can live with comfortably. Approval is based on ratios; comfort is based on your actual life, your other goals, and how you want to spend your money month to month.

We encourage buyers to shop below their maximum when it makes sense, because a home should stretch your housing, not your whole budget.

Next steps: The practical route is a pre-approval conversation with a lender, where you see your real number alongside the monthly payment options. Bring your debts, your savings, and your monthly spending, and the lender will show you the range.

From there we can compare communities that fit the number, so your search begins in the right places.