House can i afford calculator

Loan term Help More info on Loan term. Property tax Help More info on Property tax. Home insurance Help More info on Home insurance. Home price Payment. Full report Share Chevron Down. Learn more. Share Chevron Down. Next: See how much you can borrow You've estimated your affordability, now get pre-qualified by a lender to find out just how much you can borrow. ZIP Code. Explore more mortgage calculators House. Award Ribbon. Dollar Sign. Factors that impact affordability When it comes to calculating affordability, your income, debts and down payment are primary factors.

How to calculate affordability Zillow's affordability calculator allows you to customize your payment details, while also providing helpful suggestions in each field to get you started. Annual income This is the total amount of money earned for the year before taxes and other deductions.

Total monthly debts These are recurring monthly expenses like car payments, minimum credit card payments or student loans. Down payment The amount of money you spend upfront to purchase a home. Debt-to-income ratio DTI The total of your monthly debt payments divided by your gross monthly income, which is shown as a percentage. Interest rate The amount that a lender charges a borrower for taking out a loan.

Loan term The length by which you agree to pay back the home loan. Property tax When owning a home, you pay annual property taxes based on the assessed value of the property or purchase price of the home, which can affect your affordability.

Homeowner's insurance HOI Also known as homeowner's insurance is a type of property insurance that covers a private residence. Homeowner's Association HOA dues Some communities, such as condominiums and townhomes, are governed by a homeowner's association HOA that maintains communal areas and enforces rules and regulations for a monthly fee.

How much mortgage can I qualify for? Most affordable markets for homebuyers According to data from Zillow Research , record low mortgage rates have helped to boost affordability for potential homeowners.

Louis, MO Frequently asked questions about affordability Chevron Down How much house can I afford? Chevron Down How much should I spend on a house?

Here are some questions you can ask yourself to start planning out your housing budget: How much money do I want to save each month for retirement or travel? Do I have enough saved for closing costs or unexpected expenses? Lastly, tally up your expenses. This is all the money that goes out on a monthly basis. Be accurate about how much you spend because this is a big factor in how much you can reasonably afford to spend on a house.

Input these numbers into our Home Affordability Calculator to get a clear idea of your homebuying budget. Most financial advisers agree that people should spend no more than 28 percent of their gross monthly income on housing expenses and no more than 36 percent on total debt — that includes housing as well as things like student loans, car expenses and credit card payments.

Example: To calculate how much 28 percent of your income is, simply multiply your monthly income by Now, divide that total by Depending on where you live and how much you earn, your annual income could be more than enough to cover a mortgage or it could fall short. Knowing what you can afford can help you take financially sound next steps. Mortgage interest rates are at all-time lows right now, which has made homeownership more attainable for many buyers. Lenders tend to give the lowest rates to people with the highest credit scores , lowest debt and substantial down payments.

First, check your credit report at one of the big three agencies: Equifax, Experian, and TransUnion. You can get one free copy per agency per year at annualcreditreport. Carefully review your report and note any incorrect information and negative factors. If you find mistakes on your report, be sure to alert the credit reporting agency right away.

Be aware, you might have to prove that the claims are wrong by providing payment history or other evidence. Your debt-to-income ratio, or DTI, compares your monthly income to your monthly debt. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a 'Next' button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program.

Click here for rate criteria by loan product. Loan Terms for Bankrate. To receive the Bankrate. This will typically be done by phone so you should look for the Advertiser's phone number when you click-through to their website. In addition, credit unions may require membership.

You should confirm your terms with the lender for your requested loan amount. Your monthly payment amount will be greater if taxes and insurance premiums are included. Consumer Satisfaction: If you have used Bankrate. Please click here to provide your comments to Bankrate Quality Control.

View more mortgages. No mortgages were found. Total Monthly Payment. Total Closing Costs. Key Takeaways for. Our holistic approach to home affordability may result in a different home value suggestion than other websites. Check out some of the reasons why our suggestion is more accurate:. More from SmartAsset Should you rent or buy? Calculate your mortgage down payment Calculate your monthly mortgage payment Calculate your closing costs.

More about this page About this answer How do we calculate this answer Learn about how much house you can afford Infographic: Most affordable places in America.

Share Your Feedback. What is the most important reason for that score? Next Steps. Compare Mortgage Rates Which mortgage is right for you? Rent vs Buy Should you rent or buy? Closing Costs Calculator How much will you need? OK Cancel. Stay on SmartAsset. An error occurred Please reload the page.

Down Payment: Minimum Down Payment is Real Estate Taxes The average annual property tax in is -. Crime Data in Violent Crimes - violent crimes per 1, people were reported in Property Crimes - property crimes per 1, people were reported in Down payment A down payment is a cash payment that you make at the onset of a large purchase, such as a new home.

PMI is designed to protect the lender, not the buyer, in the event that the buyer defaults on their payments. Interest rate An interest rate is the amount that a lender charges you in exchange for providing the loan, expressed as a percentage of the loan amount. Your creditworthiness determines the interest rate a lender will offer to charge you.

Loan term The length of time in which you agree to repay your loan entirely. Most mortgages have either a 15 or year term. Property tax Property tax is tax paid on real estate by the owner of the property. It is dependent upon the location of the property and is calculated by the local government.

Homeowners insurance Homeowners insurance is property insurance that provides coverage if damages or losses occur to the home or property itself, or to valuables or assets inside the home. The HOA uses these fees to maintain the neighborhood, especially when there are community amenities such as a neighborhood clubhouse or park. People who live in condominiums frequently have to pay HOA fees because of the upkeep of common areas, such as landscaping or the community swimming pool.

These fees can also cover shared utility costs such as water and trash. Pre-qualification Getting pre-qualified for purchasing a home happens after a person gives preliminary information to a lender, such as income, debt, and assets.