Income & Debt
Loan Details
Debt-to-Income Ratios
The 28/36 Rule
The 28/36 rule is a widely used guideline that lenders use to determine how much mortgage you can qualify for:
28% Front-End Ratio
No more than 28% of your gross monthly income should go toward total housing costs, including principal, interest, property taxes, insurance, PMI, and HOA fees.
36% Back-End Ratio
No more than 36% of your gross monthly income should go toward all debt payments combined — housing costs plus car loans, student loans, credit cards, and other recurring debts.
This calculator uses whichever ratio is more restrictive for your situation. You can adjust the percentages above if your lender uses different limits (e.g., FHA loans may allow up to 31/43).
Your Results
Maximum Affordable Home Price
$270,091.60
Max Monthly Payment
$1,983.33
Down Payment
$40,000.00
14.8% of price
Loan Amount
$230,091.60
Limiting Ratio
Front-End
28%
Estimated Monthly Breakdown
PMI Required
Your down payment is 14.8% of the home price, which is below 20%. Private Mortgage Insurance (PMI) of approximately $95.87/mo will be added to your payment. To avoid PMI, you would need a down payment of at least $54,018.32.
Payment composition