Intergtm

Home Affordability Calculator

Determine your maximum affordable home price using front-end (28%) and back-end (43%) debt-to-income limits.

Inputs

$
$
$
%
%
$
$

Results update as you type, and the address bar keeps your numbers so the link you share reopens this exact calculation.

Maximum affordable home price

$323,000

With $100,000 down.

Detailed results
Maximum loan amount$223,000
Monthly PITI + insurance + HOA$1,960
Front-end DTI limit (28%)$1,960
Back-end DTI limit (43%)$2,510

What this result means

Maximum affordable home price: $323,000.

You can afford up to $323k in home value with a monthly PITI+insurance+HOA of $1,960.

Affordability by Down Payment %

Maximum home price at different down payment percentages.

Affordability by Down Payment %. 6 rows, first 6 shown.
Down Payment %Down Payment AmountMax Home Price
5%$25,000$258,000
10%$50,000$280,000
15%$75,000$302,000
20%$100,000$323,000
25%$125,000$345,000
30%$150,000$367,000

How this is calculated

Front-end limit = gross income × 28%. Back-end limit = (gross income × 43%) − existing debts. Max PITI = min of both. Solve iteratively for max home price given property tax, insurance, HOA.

Home affordability is constrained by two lender ratios: front-end DTI (housing payment ÷ income) and back-end DTI (all debts ÷ income).

Front-end DTI (28% rule). Lenders typically cap your housing payment—PITI, insurance, HOA—at 28% of gross income. This ensures housing doesn't crowd out other expenses.

Back-end DTI (43% rule). All debt payments, including the new mortgage, should not exceed 43% of gross income. Existing car loans, student loans, and credit cards count here.

Which is binding? The lower of the two constraints determines your max housing payment. High existing debts can drag down your affordability even if you have high income.

PITI breakdown. Principal + interest (set by loan amount and rate), property taxes (1–2% of home value annually, varies by state), homeowners insurance (~$1–3k/year), and HOA fees (if applicable). All four factor into the DTI calculation.

Down payment impact. A larger down payment lowers your loan amount, reducing the monthly P&I and thus the total PITI. This can dramatically increase the max affordable price.

Assumptions

  • DTI limits: front-end 28%, back-end 43% (standard conventional lending guidelines).
  • Property tax calculated as a percentage of home value annually, prorated monthly.
  • Homeowners insurance and HOA are fixed inputs (in reality, they scale with home price and location).
  • No PMI modeled; assume 20%+ down or add 0.5–1% to loan for insurance if < 20%.
  • Interest rate held constant over the life of the loan.
  • Loan term is fixed (e.g., 30 years); no ARM (adjustable-rate mortgage) modeling.

Frequently asked questions

›What's included in PITI?

Principal (loan repayment), interest (cost of borrowing), property taxes (local/state), and homeowners insurance (required by lenders). HOA fees, if any, also count toward the housing payment ratio.

›Why does the lender care about back-end DTI?

Back-end DTI shows whether you can handle all debts, not just housing. A 43% back-end means you have 57% of gross income left for taxes, utilities, food, and savings—a safety margin.

›Can I exceed these DTI limits?

Sometimes, if you have strong compensating factors: excellent credit (740+), low LTV (20%+ down), large liquid reserves, or low property taxes. Lenders may allow 45–50% back-end DTI in these cases.

›How do property taxes affect affordability?

Property taxes are 1–3% of home value annually depending on your state (NJ/Illinois are high; TX/TN are low). A 1% tax on a $400k home is $4k/year or ~$333/month—a significant portion of PITI.

›Should I put down 20% to avoid PMI?

PMI (private mortgage insurance) adds ~0.5–1% to your loan annually if down payment < 20%. The math: a smaller down payment may let you afford a higher price (lower PITI payment), but you'll pay PMI until you hit 20% equity.

Related calculators and guides