How the estimate is built
- Your housing budget is the smaller of 28% of gross income and 36% of gross income minus your existing debt payments.
- That budget is split between principal & interest and estimated taxes, insurance, and HOA (a percent of price you can tune).
- The calculator solves for the highest price where the total payment still fits, given your down payment, rate, and term.
Inputs that matter most
- Existing debt. A $600 car payment can knock $90,000+ off the price you qualify for. Paying off a car before applying is often the fastest way to buy more house.
- Down payment. More down means a smaller loan and no PMI at 20%, but don’t drain your emergency fund to get there.
- Rate. Every 1% change in rate moves buying power by roughly 10%.
- Property tax rate. This varies wildly — under 0.5% in some states, over 2.2% in others. Look up the actual rate for the county you’re shopping in.
Affordable vs. approved
This tool deliberately uses the conservative 28/36 guideline. Lenders will often go higher. Before stretching, make sure the payment still leaves room to:
- Fund retirement accounts
- Keep 3–6 months of expenses in reserve
- Absorb $300–$500/month in average maintenance and eventual big-ticket repairs
Then sanity-check the decision itself with the rent vs. buy calculator.