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Find out how much home you may qualify for you and compare your options across multiple programs with our home affordability calculator.
Uses DTI limits for every program, taxes, insurance, PMI, HOA and more.
See how different loan programs can impact your purchase power.
Taxes and insurance based on your ZIP code or address.
Includes insights that can help you qualify for based on our industry experience.
Provide income, debts, down payment, location & more.
Our calculator uses real numbers and mortgage guidelines.
View your estimated purchase power & suggested loan options.
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Mortgage lenders look at your income, debts, credit, down payment, property costs, loan program, and the full monthly payment to estimate what you may qualify for.
Depending on how you are paid, lenders usually start with your gross income before taxes, Medicare, Social Security, retirement contributions, or other withholdings are deducted.
For W-2 employees, this may be your base salary, hourly income, overtime, bonuses, or commission if it can be documented and averaged correctly.
For self-employed borrowers, it may work differently. Some lenders use tax returns, while other programs may review bank statements, 1099 income, profit and loss statements, or other alternative documentation.
Simple rule: use your gross income as the starting point, but remember that the way your income is calculated can change depending on the loan program.
Monthly debt is one of the biggest factors in how much home you may qualify for.
These are the monthly payments that usually show up on your credit report.
For example, if your credit card minimum payment is $45, your car payment is $300, and your student loan payment is $200, your total monthly debt would be $545.
Do not include normal living expenses like utilities, groceries, gas, cell phone bills, insurance, or childcare unless they are required debt obligations.
Your monthly debt is used to help calculate your debt-to-income ratio, which is one of the main ways lenders estimate your buying power.
Your debt-to-income ratio, also called DTI, compares your monthly debt payments to your gross monthly income.
Lenders use DTI to estimate whether your new mortgage payment fits comfortably within your overall financial picture.
There are usually two ratios:
Housing ratio: your estimated mortgage payment compared to your gross monthly income.
Total DTI: your mortgage payment plus your other monthly debts compared to your gross monthly income.
A lower DTI may give you more loan options. A higher DTI does not always mean you cannot qualify, but it may limit your program options or require stronger credit, more reserves, or a different loan strategy.
The home price is the purchase price of the property you want to buy.
But the home price by itself does not determine whether you qualify.
Lenders look at the full monthly payment connected to that home, including the loan amount, interest rate, property taxes, homeowners insurance, mortgage insurance, HOA dues, and other required housing expenses.
For example, a $450,000 home with low taxes and no HOA may have a very different monthly payment than a $450,000 home with higher taxes, expensive insurance, and a $400 monthly HOA.
That is why this calculator focuses on your estimated monthly payment and qualification, not just the purchase price.
Your down payment directly affects your loan amount, monthly payment, mortgage insurance, and sometimes your interest rate.
A larger down payment can lower your monthly payment because you are borrowing less money. It may also reduce or remove mortgage insurance depending on the loan program.
Your credit score can affect your interest rate, mortgage insurance, loan options, and sometimes how much you may qualify for.
A higher credit score may help you get better pricing, lower mortgage insurance, or more flexible approval options.
The calculator uses your credit score range to estimate your payment and qualification.
Your interest rate has a major impact on affordability.
Even a small change in rate can increase or decrease your monthly payment, which can change your estimated buying power.
For example, a higher interest rate means more of your monthly payment goes toward interest, which can reduce the home price you may qualify for. A lower rate may increase your buying power.
That is why this calculator lets you adjust the rate and compare how different loan programs may affect your estimated payment.
Property taxes are part of your total monthly housing payment.
They can vary heavily depending on the state, county, city, home price, exemptions, and local tax rates.
This matters because lenders do not only look at principal and interest. They look at the full estimated payment, including taxes.
A $450,000 home in one county may have a very different monthly payment than a $450,000 home in another county, even if the loan amount and interest rate are the same.
That is why location matters when estimating affordability.
Homeowners insurance is another important part of your estimated monthly payment.
Insurance costs can vary based on the state, property type, age of the home, roof condition, flood zone, claim history, coverage amount, and other factors.
This is especially important in states like Florida and Texas, where insurance costs can have a major impact on affordability.
The calculator may estimate insurance based on location when available, but you can always override the number if you already have a better estimate.
Mortgage insurance is applicable depending on the type of loan you get and may apply when your down payment is below certain program thresholds.
For a conventional loan, PMI is applicable if your down payment is less than 20%.
For FHA loans, MIP is applicable regardless of the down payment amount.
Mortgage insurance protects the lender, but it is paid as part of your monthly mortgage payment. Because of that, it can affect your estimated affordability.
The amount can vary based on your loan program, down payment, credit score, loan term, and other factors.
HOA dues can reduce how much home you qualify for because lenders include them in your monthly housing payment.
This is common with condos, townhomes, gated communities, and some planned neighborhoods.
For example, a $350 monthly HOA payment can reduce your buying power because it counts toward your total housing expense.
Not every borrower fits inside a traditional mortgage calculator.
If you are self-employed, a 1099 contractor, business owner, real estate investor, foreign national, ITIN borrower, or someone with strong assets but lower taxable income, your buying power may need a different type of review.
Andes Mortgage may be able to review alternative documentation options such as bank statements, 1099 income, profit and loss statements, asset depletion, DSCR loans, ITIN loans, foreign national loans, and other Non-QM programs.
Mortgage Match helps Andes Mortgage compare your income, debts, credit, down payment, location, and loan program options so you can move from an estimate to a real mortgage strategy.
Estimates are for educational purposes only and are not a loan approval, Loan Estimate, commitment to lend, or guarantee of terms. Actual qualification depends on credit, income documentation, assets, property type, occupancy, loan program, underwriting findings, lender guidelines, and other factors. Andes Mortgage LLC NMLS #2187991.
Book a call and get personalized information.
Skip the wait and get started on your pre-approval asap.