HOUSE AFFORDABILITY CALCULATOR
Know Exactly How Much Home You Can Truly Afford
Your Maximum Home Budget
$0.00
Estimated Monthly Payment: —
Safe Loan Amount: —
Debt-to-Income Ratio: 36% (Standard)
Down Payment Applied: —
Can You Afford Your Dream Home?
Purchasing a home is the largest financial commitment most people ever make. Creshy’s House Affordability Calculator goes beyond simple math; it looks at your income and existing debts to determine a realistic purchase price that won’t leave you “house poor.”
How Affordability is Calculated
Lenders typically use the **28/36 Rule**. This means your total housing costs should not exceed 28% of your gross monthly income, and your total debt payments (including the new mortgage) should not exceed 36%.
Key Features
- Debt-Inclusive Analysis: Factors in your car loans, credit cards, and student loans for a realistic budget.
- Down Payment Integration: Instantly adds your available cash to your borrowing capacity.
- Mortgage Logic: Uses complex amortization formulas to work backward from a safe monthly payment to a total purchase price.
- Bank-Ready Estimates: Get a figure that closely aligns with what a mortgage officer might tell you.
Tips for Home Buyers
- Boost Your Down Payment: A larger down payment not only increases your budget but also lowers your monthly interest costs.
- Lower Your DTI: Paying off smaller debts before applying for a mortgage can significantly increase the loan amount you qualify for.
- Factor in Taxes: Remember that property taxes and home insurance will add to your monthly cost beyond the principal and interest.