Loan Details
Max Home Price
$296,887
Max Loan Amount
$236,887
Monthly Payment
$1,983
DTI Ratios
What DTI ratio do I need to buy a home?
Most lenders want your total debt-to-income (DTI) ratio to be 36% or less. Some loan programmes, like FHA loans, allow up to 43%. The front-end ratio (housing costs only) should ideally stay below 28%. A lower DTI gives you a better chance of approval and may get you a lower interest rate.
How does a bigger down payment help?
A larger down payment means you borrow less money, so your monthly payment drops. If you put down at least 20% of the home price, you avoid paying Private Mortgage Insurance (PMI), which can save you hundreds of dollars each month. A bigger down payment also means you start with more equity in your home.
What is the 28/36 rule?
The 28/36 rule is a guideline lenders use. It says your housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income (front-end ratio). Your total monthly debts, including housing, should not exceed 36% of your gross monthly income (back-end ratio). Staying within these limits helps ensure you can comfortably afford your home.
Note: This calculator provides estimates only. Your actual affordability depends on your credit score, specific lender requirements, and local market conditions. Speak to a mortgage professional before making any decisions.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- CFPB — How Much House Can I Afford?
- IRS Publication 936 — Home Mortgage Interest Deduction
- IRS Publication 17 — Your Federal Income Tax
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.