How Much Mortgage Can I REALLY Afford 2025? 💰
Real Calculator vs Lender Maximum | Don't Trust Bank Approval!
❌ Lender Says
$2,925/mo
45% DTI maximum approval
✅ YOU Can Afford
$1,200/mo
Comfortable with 20% buffer
⚠️ Lender Approval ≠ What YOU Can Afford!
Lenders approve maximum you CAN pay (45% DTI), not what you SHOULD pay. Get pre-approved to see lender maximum, then calculate YOUR real comfort level with our guide.
Calculate Real Affordability →Your 10-day research revealed the truth: lender approval is NOT what you can afford. Lenders approve 45% DTI maximum, leaving zero room for savings or emergencies. This complete guide shows you how to calculate YOUR real affordability using the 28/36 rule, including ALL costs (taxes, insurance, PMI, HOA). Before you buy, get pre-approved to see lender maximum, then use this guide to find YOUR comfort level.
📊 Step-by-Step Real Affordability Calculator
Your Example: $6,500 Monthly Income
Step 1: Calculate Gross Monthly Income
Step 2: Calculate 45% Lender Maximum
Available for ALL debt (housing + car + credit cards)
Step 3: Subtract Existing Debt
Step 4: Calculate Actual Costs (PITI + PMI + HOA)
Step 5: True Affordability (YOUR Budget)
What YOU can live on comfortably with 20% emergency buffer:
This leaves room for savings, emergencies, and comfortable living
🚨 The Hidden Payment Problem
Many online calculators show "$800/month" but reality includes:
(not $800!)
Bottom Line from Your Research:
Don't let lender approval dictate affordability—stick to YOUR personal budget covering all costs with 20% reserve for emergencies.
🎯 Get Pre-Approved (Then Calculate YOUR Budget)
See lender maximum, then use this guide to find YOUR real comfort level.
Get Pre-Approved Now →✓ See lender max ✓ Calculate YOUR budget ✓ Buy comfortably
💡 Real Income Examples
$60K Income
$100K Income
$150K Income
❓ Frequently Asked Questions
How much mortgage can I really afford?
Calculate YOUR real affordability: Take gross monthly income, multiply by 28% for housing maximum (28/36 rule). Subtract existing debts. Then calculate PITI (Principal, Interest, Taxes, Insurance) + PMI + HOA. Leave 20% buffer for emergencies. Example: $6,500 income × 28% = $1,820 housing max. With $800 existing debt, you have $1,020 for mortgage. But PITI + PMI + HOA = $1,450, so you can only afford $800 P&I = $130K-$150K home, not the $300K lender approves.
What is the 28/36 rule for mortgage affordability?
28/36 rule: Spend maximum 28% of gross income on housing (PITI + PMI + HOA), maximum 36% on total debt (housing + car + credit cards). Example: $6,500 income = $1,820 max housing (28%), $2,340 max total debt (36%). If you have $800 existing debt, you have $1,540 left for housing. This is lender maximum, not YOUR comfort level.
Why is my lender approval higher than what I can afford?
Lenders approve based on 45% DTI (debt-to-income), not YOUR comfort level. They approve maximum you CAN pay, not what you SHOULD pay. Lender approves $2,925/month (45% of $6,500 income) but leaves zero room for savings, emergencies, or lifestyle. Real affordability is 28-30% of income = $1,820-$1,950/month for comfortable living.
What costs should I include in mortgage affordability calculation?
Include ALL costs in affordability: Principal + Interest (P&I), Property taxes ($200-400/month), Homeowners insurance ($120-200/month), PMI if <20% down ($100-250/month), HOA fees if applicable ($200-500/month), Maintenance reserve (1% annually = $70-150/month), Utilities ($150-300/month). Total housing cost is 30-50% MORE than P&I alone.
🚀 Ready to Buy Within YOUR Budget?
Get pre-approved and calculate your TRUE affordability with all costs included.
Calculate Real Affordability →