How Much House Can I Afford?

The amount a lender approves and the amount you're comfortable paying aren't always the same. Here's how to find both.

How lenders figure it out

• Debt-to-income ratio (DTI): your monthly debts, including the new house payment, compared to your gross monthly income.
• The house payment they count includes principal, interest, property taxes, homeowners insurance and mortgage insurance.
• Your credit score affects your interest rate, which changes how much house the same payment buys.
• Your down payment and savings left over after closing.

Costs people forget

• Property taxes vary a lot from town to town, even next door to each other.
• Flood insurance in some areas, and condo or HOA fees.
• Closing costs, usually a few percent of the price.
• Repairs and maintenance. Older New England homes need a budget for heating systems, roofs and windows.

Pick your number

Start from the monthly payment that fits your life, then work backward. Our mortgage calculator lets you enter taxes in dollars, insurance and the loan type (conventional, FHA or VA) to see the full payment for any price.

We'll help you set a price range that fits your budget before you tour homes. This article is general information, not financial advice; your lender confirms what you qualify for.