How it works
Lenders often limit your total debt payments to a percentage of income, called the debt-to-income (DTI) ratio.
Max payment = Monthly income × DTI; home price = loan + down payment
The 28/36 rule
A common guideline is that housing should stay under 28 percent of gross income, and total debt (housing plus other debts) under 36 percent. This calculator uses your chosen DTI for the total debt limit.
Remember the extra costs
Property taxes, insurance, maintenance, and utilities are on top of the mortgage payment. The list price is not your all-in monthly cost.
A comfortable budget beats a maximum one
Just because a lender approves a number does not mean you should spend that much. Many buyers are happier buying below their maximum to leave room for other goals.