How Much House Can I Afford?
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The responsible answer is a range, not a salary multiple: compare a lender-style DTI ceiling with an all-in payment that fits the rest of your household budget.
Use two affordability tests
Qualification scenario: gross income and defined monthly debts are tested against stated DTI assumptions. Comfort scenario: start with the all-in housing amount you can pay while maintaining savings, repairs, utilities, childcare, transport, and other priorities. Use the lower result as the shopping range and keep the higher number only as context.
Build an all-in monthly number
Add principal, interest, property tax, homeowners insurance, mortgage insurance, HOA or co-op dues, and known assessments. Keep utilities and maintenance visible as household costs even when they are not part of the lender payment. A lower purchase price can still have a higher all-in cost if local taxes, insurance, or HOA dues are larger.
Check upfront cash
Monthly affordability and closing cash are independent constraints. Reserve funds for the down payment, settlement costs, prepaid items, moving, immediate repairs, and an emergency cushion. The Loan Estimate for a real offer is more authoritative than a generic closing-cost percentage.
Worked decision
Suppose the lender-style scenario allows $3,000 per month, but the household budget leaves $2,550 after required savings and non-debt expenses. Use $2,550 for the comfort case. If taxes, insurance, HOA, and mortgage insurance total $750, only $1,800 remains for principal and interest. Solve the supported loan from $1,800—not from the $3,000 ceiling.
What can change the range
The note rate, loan term, down payment, debts, taxes, insurance, HOA, mortgage insurance, and accepted income can all move the result. Test one variable at a time and label every scenario. Do not describe a generic rule as approval.
Frequently asked questions
Is three times salary a reliable rule?
No. It ignores rate, debts, down payment, property costs, term, and cash reserves.
Should I spend the maximum?
Not automatically. Qualification does not account for every household priority or risk.
Should maintenance be in the mortgage payment?
Usually no, but it belongs in the affordability decision as a separate reserve.
What should I do before making an offer?
Compare current lender quotes, property-specific taxes and insurance, cash to close, and your post-closing reserves.
Sources
- CFPB affordability guidance: https://www.consumerfinance.gov/ask-cfpb/how-can-i-figure-out-if-i-can-afford-to-buy-a-home-and-take-out-a-mortgage-en-118/
- CFPB DTI definition: https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/
- CFPB Loan Estimate: https://www.consumerfinance.gov/owning-a-home/loan-estimate/
Source research checked September 11, 2026. CalculatorGeek Algorithmic Team completed the calculation, source, and content review on September 11, 2026. This page provides educational estimates, not lending, legal, tax, or financial advice.
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