How Much House Can You Afford?

The price a lender will approve and the price you will be comfortable paying every month are rarely the same number. Start with the second one.

Start With the Monthly Payment

Your monthly payment is more than principal and interest. Property tax and insurance sit on top of it, and so does mortgage insurance if you put down less than 20%. Our payment calculator adds all four, so try a few prices and see where the total lands.

What Lenders Measure

• Your debt-to-income ratio, usually 43% or lower including the new payment
• Your credit score, which sets the rate as much as the approval
• The cash you have for the down payment, closing costs and reserves

A pre-qualification call with a loan officer turns these three into a price range in about three minutes, with no credit check.