# What House Can We Afford

To determine how much house you can afford, use this home affordability calculator to get an estimate of the property price you can afford based upon your income and debt profile. generally, lenders cap the maximum monthly housing allowance (including taxes and insurance) to lesser of Front End Ratio (28% usually) and Back End Ratio (36% usually).

Buying a home is a rite of passage in America, one that 90% of us will make at some point in our lives, according to estimates from Freddie Mac. But how much house can we afford?

Once you know how much you can borrow add to that your down payment to calculate the maximum house price you can afford. In this example, the maximum loan amount is calculated at \$203,000. If you have a \$20,000 down payment, you can purchase a \$223,000 house.

Zillow’s Home Affordability Calculator will help you determine how much house you can afford by analyzing your income, debt, and the current mortgage rates.

Ever wonder how mortgage banks determine what you can afford? With this calculator, we’ll mimic what a mortgage banker does: analyze your income, debts, savings and estimated housing costs to determine how much you can safely afford to pay in total housing costs each month. From these figures, you.

To determine ‘how much house can I afford,’ use the 36% rule, which states your monthly mortgage expenses and other debt payments shouldn’t exceed 36% of your gross monthly income.