Question 1

How is my maximum home price calculated?

Accepted Answer

We use the standard 28/36 rule: your total monthly housing payment (principal, interest, property tax, and insurance) can't exceed 28% of your income, and your total debt including housing can't exceed 36%. We take whichever cap is more restrictive, then solve for the largest home price whose full monthly payment fits that budget.

Question 2

What's included in the monthly payment estimate?

Accepted Answer

Principal and interest on the mortgage, estimated property tax (based on the rate you enter), and homeowners insurance. It doesn't include HOA fees, PMI, or utilities — factor those in separately if they apply to you.

Question 3

Why do property tax and home price affect each other?

Accepted Answer

Property tax is a percentage of the home's value, so a more expensive home means a higher tax bill, which eats into the budget available for principal and interest. We solve the two together rather than estimating tax after the fact.

Question 4

What if I'm shown as not eligible?

Accepted Answer

That means your existing monthly debt already uses up your full 36% back-end DTI budget, leaving no room for a housing payment. Paying down existing debt or increasing income are the two levers that change this.

Question 5

Does a bigger down payment help?

Accepted Answer

Yes — every rupee of down payment reduces the loan you need, which frees up more of your monthly housing budget for a higher-priced home instead of interest.

Question 6

Is 28/36 a hard rule?

Accepted Answer

It's the conventional-mortgage rule of thumb most lenders start from, not a universal law — some loan programs (FHA, VA) allow higher DTI. Treat this as a conservative, responsible estimate rather than a guarantee of approval.

Question 7

Can I save or share my results?

Accepted Answer

Yes — use Share to copy a link that reproduces your exact inputs, or log in to save your calculation and revisit it later from your history.

Home Affordability Calculator

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