Mortgage Affordability Calculator 2025: How Much House Can I Afford?
Discover exactly how much house you can afford in 2025 with our comprehensive affordability calculator. Get personalized results based on your income, debts, and down payment to make the smartest home buying decision.
🏠 Quick Answer
Most experts recommend spending no more than 28% of your gross monthly income on housing costs. Use our calculator below to get your personalized affordability range based on current 2025 rates and lending standards.
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How Much House Can I Afford? The Complete Guide
The 28/36 Rule Explained
The 28/36 rule is the gold standard for determining home affordability:
- • 28% Rule: Housing costs ≤ 28% of gross monthly income
- • 36% Rule: Total debt payments ≤ 36% of gross monthly income
| Annual Income | Monthly Income | Max Housing (28%) | Affordable Home Price* |
|---|---|---|---|
| $50,000 | $4,167 | $1,167 | $175,000 |
| $75,000 | $6,250 | $1,750 | $275,000 |
| $100,000 | $8,333 | $2,333 | $375,000 |
| $150,000 | $12,500 | $3,500 | $575,000 |
*Assumes 7.5% rate, 20% down, $300/month taxes/insurance
Factors That Affect Home Affordability
1. Your Income
Lenders consider all sources of stable income:
- • Base salary or wages
- • Bonuses (2-year average)
- • Commission income
- • Self-employment income
- • Rental income (75% counted)
- • Alimony/child support
2. Your Existing Debts
Monthly debt payments that count toward your DTI ratio:
- • Credit card minimum payments
- • Auto loans
- • Student loans
- • Personal loans
- • Other mortgage payments
3. Your Credit Score
| Credit Score | Interest Rate | Monthly Payment ($300k) | Total Interest |
|---|---|---|---|
| 760+ | 7.25% | $2,046 | $436,560 |
| 680-759 | 7.50% | $2,097 | $454,920 |
| 620-679 | 8.00% | $2,201 | $492,360 |
Down Payment Impact on Affordability
Your down payment significantly affects how much house you can afford:
Down Payment Options 2025:
- • 3% Down: Conventional (first-time buyers)
- • 3.5% Down: FHA loans
- • 5% Down: Conventional (repeat buyers)
- • 10% Down: Better rates, lower PMI
- • 20% Down: No PMI, best rates
Down Payment Scenarios ($100k Income)
| Down Payment | Home Price | Loan Amount | Monthly Payment | PMI |
|---|---|---|---|---|
| 3% ($11,250) | $375,000 | $363,750 | $2,542 | $334/month |
| 10% ($37,500) | $375,000 | $337,500 | $2,359 | $196/month |
| 20% ($75,000) | $375,000 | $300,000 | $2,097 | $0 |
Hidden Costs That Affect Affordability
Beyond Principal and Interest
Your total monthly housing payment includes:
- • Principal & Interest: Your loan payment
- • Property Taxes: 0.5-2.5% of home value annually
- • Homeowner's Insurance: $800-$2,000+ annually
- • PMI: 0.3-1.5% of loan amount annually
- • HOA Fees: $100-$500+ monthly
- • Maintenance: 1-3% of home value annually
Strategies to Afford More House
1. Improve Your Credit Score
- • Pay down credit card balances
- • Pay all bills on time
- • Don't close old credit accounts
- • Dispute credit report errors
2. Reduce Your Debt
- • Pay off credit cards
- • Consolidate high-interest debt
- • Avoid new debt before buying
- • Consider debt avalanche method
3. Increase Your Income
- • Ask for a raise or promotion
- • Take on freelance work
- • Consider a co-borrower
- • Document all income sources
💡 Pro Tip:
Get pre-approved before house hunting to know your exact budget and strengthen your offers.
Get Pre-Approved Today →Frequently Asked Questions
How much house can I afford with my salary?
Generally, you can afford a house that costs 2.5-3 times your annual salary. With a $100,000 salary, you could afford a $250,000-$300,000 home, depending on your debts, down payment, and interest rates.
What is the 28/36 rule for mortgages?
The 28/36 rule states that your housing costs should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36% of your gross monthly income.
How much do I need for a down payment in 2025?
Down payment requirements vary: 3% for conventional loans (first-time buyers), 3.5% for FHA loans, 0% for VA/USDA loans. However, 20% down avoids PMI and gets better rates.
What factors affect how much house I can afford?
Key factors include your income, existing debts, credit score, down payment amount, interest rates, property taxes, insurance costs, and HOA fees.
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