Step 2 · Education-only
Affordability Calculator
The listing price isn't the monthly payment. This calculator builds the full payment — principal and interest, property taxes, homeowner's insurance, HOA dues, and PMI — then compares it to your income as a debt-to-income sanity check. Everything runs in your browser; nothing is sent or stored.
Education only, not financial advice. These are planning estimates, not a loan offer, rate quote, or pre-approval. Tax rates and insurance vary widely by location. A licensed mortgage professional gives you real numbers.
How to read your result
- The "real" payment includes PITI + extras. Principal, interest, taxes, and insurance — plus HOA and PMI where they apply. Most first-time buyers underestimate by 20–40% when they only think about principal and interest.
- PMI appears below 20% down. Private mortgage insurance is a real monthly cost on conventional loans until you reach roughly 20% equity. Our estimate uses a typical 0.6%/year placeholder — your actual PMI depends on credit and loan type.
- The 28/36 rule of thumb. Many lenders like housing costs at or under ~28% of gross monthly income and total debts under ~36–45%. DTI is the headline number in pre-approval — if yours is high, either the price comes down or the income picture improves.
- This is the planning number, not the approval number. Lenders use their own underwriting, their own tax/insurance figures, and your verified credit. Use this to shop in the right price band before you apply.
Next: pre-approval vs pre-qualification →