How much mortgage can I afford based on income?

You’re likely asking yourself, can I afford to buy a house? The answer to that question depends on your financial situation, income, and budget. It's essential to know if the monthly payments on a mortgage will fit within your budget. This calculator helps you determine that.


How It Works

Start by entering how much you think your monthly mortgage payment will be. Next, enter your monthly income after taxes. Finally, enter your expenses; add and delete categories to make your list of expenses as accurate as possible. Take a look at the results!





When do I know if it’s a good time to buy a home?

There’s no one-size-fits-all answer as to when the best time to buy a home really is. There are several factors that everyone should consider before taking out a mortgage. This includes...

  • Steady Income: Ensure you have a stable job providing a monthly income sufficient to cover the mortgage.
  • Decent Credit Score: Remember, the higher the credit score, the lower the interest rate on any potential home. A higher credit score tells lenders that you're a reliable borrower.
  • Debt-to-Income-Ratio (DTI): DTI is the percentage of your gross monthly income that goes toward paying off debts each month. Most lenders prefer a DTI lower than 43% before they’ll approve you for a mortgage. A lender’s calculations include any future monthly mortgage payment when calculating a potential borrower’s DTI.
  • Emergency Fund: Don’t spend your whole life savings on the down payment of a mortgage. Have enough saved that there will be an additional sum of money for unexpected costs associated with home ownership including insurance, maintenance, repairs, utilities, etc.
  • Long-Term Plans: Consider future needs, such as family growth and relocation.
  • Personal Readiness: Make sure you feel emotionally and financially prepared for homeownership.


While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

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