How Much House Can I Afford?

Estimate a comfortable home price using your income, expenses, debts, savings, cash, and current mortgage rates.

Private calculation
Freddie Mac benchmark
MARKET RATE BENCHMARK7.28%Freddie Mac 30 Year Fixed
UPDATEDOct 1, 2026
SOURCEFreddie Mac via FRED
You can override this rate.
SERIESMORTGAGE30US
BENCHMARK MODELUS Market Rate

Your Financial Profile

Start with your income and we will estimate your comfortable home price.

Income and Debt

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Cash and Down Payment

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Mortgage Details

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Target Home Price

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Comfortable Home Price
$260,870
Estimated Monthly Ownership Cost$2,015 per month
What Limits Your Budget?Available Upfront CashLiquid cash limits your purchase price before monthly budget.
DTI Based Estimate
$406,364
Limited by front end DTI
Principal and Interest
$1,428 per month
Component of total $2,015 monthly cost

Financial Summary & Breakdown

Complete breakdown based on your inputs and estimated comfortable home price.

Purchase & Loan Details
Home Price$260,870
Down Payment (20%)$52,174
Loan Amount$208,696
Estimated Closing Costs$7,826
Cash Available for Purchase$60,000
Monthly Housing Breakdown
Principal and Interest$1,428
Property Taxes$261
Homeowners Insurance$109
Maintenance Reserve (1% Est.)$217
Monthly Ownership Cost$2,015
Remaining After Buffer$485

Target Readiness: $450,000

CASH/INCOME SHORTFALL
Required Upfront Cash$123,500
Upfront Cash Shortfall$43,500
Front-End DTI (Housing)31.0% (Limit 28%)
Back-End DTI (Total Debt)36.0% (Limit 36%)

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Continue Planning Your Home Purchase

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Understand Your Home Buying Budget

Purchasing a home involves two simultaneous financial hurdles: ongoing monthly payment capacity and upfront liquid cash reserves. Decision Globe US Home Affordability Calculator evaluates both boundaries independently to provide realistic planning estimates based on your entered assumptions.

How much house can I afford?

You can afford a home price where your total monthly housing costs fit comfortably within your net take home pay after accounting for debts, living expenses, savings, and a safety buffer, while your upfront cash covers down payment and closing costs.

What determines home affordability?

Home affordability is determined by two independent constraints: your liquid cash on hand for down payment and closing costs, and your monthly budget after accounting for gross income, debt payments, property taxes, home insurance, HOA dues, and personal living expenses.

How does DTI affect how much house I can afford?

Underwriters use the 28/36 Debt to Income (DTI) rule to cap your maximum mortgage qualification. Housing costs (principal, interest, taxes, insurance) should not exceed 28% of gross monthly income, and total debt payments including housing should not exceed 36% of gross monthly income.

Why can my DTI estimate be higher than my comfortable home price?

Lender DTI limits evaluate maximum loan qualification based on gross pre-tax income, ignoring payroll taxes and personal living costs. Your comfortable home price evaluates actual net take home pay and cash reserves to prevent house poor financial stress.

How much cash do I need to buy a home?

Buying a home requires liquid cash for your down payment (typically 3% to 20% of purchase price), closing costs (usually 2% to 5% of purchase price), plus emergency savings reserve to keep after closing.

What costs are included beyond principal and interest?

Beyond mortgage principal and interest (P&I), total monthly ownership includes property taxes, homeowners insurance, Private Mortgage Insurance (PMI) when down payment is under 20%, HOA or condo fees, and an ongoing home maintenance reserve.