How Much House Can I Afford in 2026? Complete Calculator Guide
The #1 question on Reddit answered: Calculate exactly how much house you can afford based on your income, debts, and down payment. Real examples from $50K to $200K salary with DTI breakdowns.
⚡ Quick Answer: The 28/36 Rule
Housing Ratio: Maximum of your gross monthly income for mortgage + taxes + insurance
Total DTI: Maximum of gross income for ALL debts (housing + car + student loans + credit cards)
💡 Pro Tip from Reddit: Use your NET income (take-home pay) instead of gross for a more realistic budget. Many Redditors who used gross income ended up "house poor."
📊 How Much House Can You Afford by Income (2026)
Based on 7% interest rate, 28% housing ratio, and varying down payments. These are maximum amounts - many experts recommend staying 10-20% below these limits.
| Annual Income | Max Monthly Payment | 3% Down | 10% Down | 20% Down |
|---|---|---|---|---|
| $50,000 | $1,167 | $165,000 | $185,000 | $210,000 |
| $75,000 | $1,750 | $250,000 | $280,000 | $315,000 |
| $100,000 | $2,333 | $330,000 | $370,000 | $420,000 |
| $125,000 | $2,917 | $415,000 | $465,000 | $525,000 |
| $150,000 | $3,500 | $500,000 | $560,000 | $630,000 |
| $200,000 | $4,667 | $665,000 | $745,000 | $840,000 |
🎯 Reality Check: These numbers assume NO other debts. If you have car payments, student loans, or credit card debt, your affordable home price drops significantly. See the DTI impact table below.
🏠 Get Your Exact Pre-Approval Amount
Stop guessing! Get pre-approved in minutes and know exactly how much house you can afford. No obligation, no impact on credit score for initial quotes.
Get Pre-Approved Now (2 Minutes) →💳 How Existing Debt Crushes Your Buying Power
This is what Reddit users miss most: existing debts dramatically reduce how much house you can afford. Here's the impact on a $100,000 income:
| Existing Monthly Debt | DTI Used | Remaining DTI | Max Mortgage Payment | Affordable Home |
|---|---|---|---|---|
| $0/month | 0% | 43% | $3,583 | $510,000 |
| $300/month (car) | 3.6% | 39.4% | $3,283 | $467,000 |
| $500/month (student loans) | 6% | 37% | $3,083 | $438,000 |
| $800/month (car + loans) | 9.6% | 33.4% | $2,783 | $396,000 |
| $1,200/month (multiple debts) | 14.4% | 28.6% | $2,383 | $339,000 |
⚠️ $800/month in debt = $114,000 LESS house! That car payment and student loans just cost you over $100K in buying power.
✅ Strategy: Pay off high-payment debts before buying. A $300/month car payment costs you $43,000 in home buying power.
🏠 The TRUE Monthly Cost of Homeownership
Your mortgage payment is just the beginning. Here's what Reddit's r/FirstTimeHomeBuyer wishes they knew:
| Home Price | Mortgage (P&I) | Taxes | Insurance | PMI | Maintenance | TRUE TOTAL |
|---|---|---|---|---|---|---|
| $300,000 | $1,800 | $375 | $150 | $150 | $250 | $2,725 |
| $400,000 | $2,400 | $500 | $175 | $200 | $333 | $3,608 |
| $500,000 | $3,000 | $625 | $200 | $250 | $417 | $4,492 |
| $600,000 | $3,600 | $750 | $225 | $300 | $500 | $5,375 |
🚨 Reality Check: A $400,000 home with a $2,400 mortgage payment actually costs $3,608/month when you include everything. That's 50% MORE than the mortgage alone!
💬 Real Stories from Reddit: What Actually Worked
"$120K household income, bought a $250K house instead of the $400K we were approved for. Best decision ever. We have money for vacations, retirement, and emergencies. Not house poor at all."
Key Lesson: Just because you're approved for $X doesn't mean you should spend $X.
"Used gross income to calculate affordability. Forgot about taxes, insurance, and maintenance. Now spending 45% of take-home pay on housing. Can't save anything. Feeling trapped."
Key Lesson: Always calculate using NET income and include ALL housing costs.
"Before buying, we 'practiced' paying the full housing cost for 6 months. Put the difference between rent and expected payment into savings. Proved we could handle it AND built our down payment."
Key Lesson: Test your budget before committing to a 30-year mortgage.
🧮 5-Step Affordability Calculator
Step 1: Calculate Your Maximum Monthly Payment
Monthly Gross Income × 0.28 = Maximum Housing Payment
Example: $8,333/month × 0.28 = $2,333 max payment
Step 2: Subtract Existing Debts from DTI
(Monthly Gross × 0.43) - Existing Debts = Available for Mortgage
Example: ($8,333 × 0.43) - $500 = $3,083 available
Step 3: Use the LOWER of Step 1 or Step 2
In our example: $2,333 (Step 1) is lower than $3,083 (Step 2)
Your max payment: $2,333/month
Step 4: Subtract Taxes, Insurance, PMI
$2,333 - $400 (taxes) - $150 (insurance) - $150 (PMI) = $1,633
Available for principal & interest: $1,633/month
Step 5: Convert to Home Price
At 7% interest, $1,633/month supports a loan of ~$245,000
With 10% down: $272,000 home price
With 20% down: $306,000 home price
💰 Compare Rates from Multiple Lenders
Different lenders offer different rates. A 0.5% lower rate on a $300K loan saves you $30,000+ over the life of the loan. Compare rates in 2 minutes.
Compare Lender Rates Now →🚫 7 Affordability Mistakes That Lead to Being "House Poor"
❌ Mistake #1: Using Gross Income
Calculating affordability with pre-tax income ignores that 25-35% goes to taxes. Use net income for realistic budgeting.
❌ Mistake #2: Forgetting Hidden Costs
Taxes, insurance, PMI, HOA, maintenance, and utilities can add 50%+ to your mortgage payment.
❌ Mistake #3: Maxing Out Approval
Just because you're approved for $500K doesn't mean you should spend $500K. Stay 10-20% below your max.
❌ Mistake #4: Ignoring Future Changes
Job changes, kids, medical expenses, car replacements. Leave room in your budget for life changes.
❌ Mistake #5: Skipping Emergency Fund
You need 3-6 months expenses AFTER buying. Don't drain savings for a bigger down payment.
❌ Mistake #6: Forgetting Closing Costs
2-5% of home price in closing costs. On a $350K home, that's $7,000-$17,500 you need at closing.
❌ Mistake #7: Not Shopping Rates
A 0.5% rate difference on a $300K loan = $30,000+ in interest over 30 years. Always compare at least 3-5 lenders.
❓ Frequently Asked Questions
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Meet David
Refinance & Rate Specialist
David Rodriguez is a seasoned refinancing expert with over 10 years of experience in mortgage rate analysis and market trend forecasting. As a Certified Rate Lock Specialist, he has saved homeowners millions in interest payments through strategic refinancing timing. His expertise in Federal Reserve policy impact and mortgage-backed securities makes him a go-to expert for rate predictions and refinancing strategies.
EXPERTISE:
KEY ACHIEVEMENT:
Saved clients $50M+ in interest payments