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Home Affordability Calculator

Do you want to buy a new home but aren't sure what prices fit your budget? Use our free home affordability calculator to estimate how much home you can afford.

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How Much Home Can You Afford?

When you’re thinking about buying a home, figuring out how much you can afford is a great first step. Use our home affordability calculator to get an estimate!

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Calculator assumes an average cost for homeowner association dues and is based on a set housing and debt ratio. This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of buying a home, speak with a loan advisor at Freedom Mortgage.

Based on the values you provided, you may be able to afford a home worth up to $270,000

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* This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

A loan advisor from Freedom Mortgage will reach out to you to review your results and discuss the request for a cash out refinance on your home’s equity.

By clicking "Get Your Results," you consent to be contacted, including via automated technology or artificial/prerecorded voice, by Freedom Mortgage and any of its current or future affiliated companies (collectively "Freedom Mortgage") at the phone number(s) and email address(es) provided for marketing purposes about loans, even if your number is listed on a federal, state or internal do not call list . You affirm that you are the subscriber of the phone number(s) and email address or that the subscriber has authorized you to provide this consent. Your consent is not a condition of purchase of goods or services from Freedom Mortgage.
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Based on the values you provided, you may be able to afford a home worth up to

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Talk to Freedom Mortgage About Home Affordability Today

What Is Home Affordability?

Mortgage lenders often estimate home prices you can afford by comparing your monthly gross income to your total monthly debt payments, including your mortgage payment on a new home.

Lenders do this because they want to be sure you can afford your monthly mortgage payment and other debt payments you may have, as well as living expenses, like food and clothing.

To make an estimate of affordability, lenders frequently calculate a percentage called a debt-to-income ratio or “DTI.” Here’s an example:

Monthly gross income $10,000
Monthly non-mortgage debt payments $1,000
Monthly mortgage payment $2,600
Total monthly debt payments $3,600
Calculation: $3,600 ÷ $10,000 = 0.36  
Debt-to-income ratio 36%

We used a 36% debt-to-income ratio, because this is the maximum DTI many homebuyers can have and still qualify for a mortgage.

Our home affordability calculator uses a debt-to-income ratio as part of its calculations. It also considers the costs of your loan's principal, interest, property taxes, and homeowners insurance, because they are included in your monthly mortgage payment.

Each of these costs can affect the prices of homes you can afford. For example, when interest rates are higher, you may be able to afford less expensive homes, because more of your monthly payment goes toward interest.

Finally, the size of your down payment affects prices you can afford. When you have more money for a down payment, you can generally afford a more expensive home.

How to Use a Home Affordability Calculator

Our calculator asks you to fill in information about your finances, the interest rate you think you might get on a new mortgage, how many years you'll need to pay off the mortgage (the loan's "term"), and an estimate of the tax and insurance costs of the home you want to buy.

  • Annual gross income
  • Monthly debt payments
  • Down payment
  • Loan term
  • Interest rate
  • Property taxes and homeowners insurance

With this information, the calculator can give you an estimate of affordable home prices within the bigger picture of your monthly expenses and income.

By entering different numbers into the calculator, you can see how they impact your affordability. Keep in mind, this is just an estimate, meant to be one tool that helps you focus your search on houses that fit your budget. You can also estimate affordable home prices by getting prequalified.

How a Home Affordability Calculator Can Help You

Price is maybe the most important part of your homebuying decision, which is why understanding how much house you can afford and establishing a budget can help you look with more confidence.

You’ll also want to consider the size of the home, the number of bedrooms and bathrooms, the quality of the neighborhood and schools, the distance from your work, and more.

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