Set the maximum debt load
Credit scores of 720 or higher use a 50% maximum total debt ratio. Scores below 720 use 45%.
Home Affordability Calculator
How Much House Can You Afford?
Start with the payment your income and current monthly debts may support, then work backward into an estimated home price using real-time mortgage-rate data, your credit score, down payment, taxes, insurance and mortgage insurance.
Planning tool only. Mortgage qualification is lender-specific. This calculator intentionally uses a simplified set of assumptions so you can estimate buying power before getting a full preapproval.
Buying Power Calculator
Estimate your maximum purchase price
Use gross household income before taxes. For monthly debt, include recurring obligations that appear on your credit report such as auto loans, student loans, minimum credit-card payments and other installment debt.
* This calculator provides a rough, educational estimate only. It is not a loan estimate, pre-qualification, or pre-approval, and it is not a commitment to lend. Figures shown are based on the information you enter and general assumptions about interest rate, property tax, homeowners insurance and mortgage insurance — actual costs vary by property, county and loan program. A real pre-approval requires a full review of your credit, income, assets and the property, and is subject to underwriting approval.
Jordan Lee Mortgage is a licensed dba of Mortgage Trust, Inc. in Idaho and Oregon. In California, Colorado, Connecticut, Montana, New Mexico, and Washington, Jordan Lee (NMLS 1440237) is licensed and does business as Mortgage Trust, Inc. In Florida, Minnesota, North Carolina, South Dakota, Texas, and Utah, Jordan Lee (NMLS 1440237) is licensed and does business as Mortgage T, Inc.
This tool is for informational purposes only and is not a commitment to lend. Terms and conditions of programs, products and services are subject to change or termination without notice. All loans are subject to credit and property approval. Certain restrictions may apply on all programs. Rates, APR and payment estimates shown are illustrative only; the actual rate and terms available to you will depend on your credit history, down payment, loan program and other factors. Please consult a licensed loan originator for exact figures.
NMLS Consumer Access · Mortgage Trust, Inc. | NMLS 3250 · 4386 S Macadam Ave. Suite 302, Portland, OR 97239 · 503.488.1800
How the Math Works
From income to home price
The calculator works backward from a simplified maximum monthly housing payment instead of pretending principal and interest are the only costs of owning the home.
Subtract existing monthly debt
Your recurring monthly obligations come out of that maximum debt allowance. What remains is the estimated housing-payment budget.
Build the full housing payment
The estimate includes principal and interest, taxes, homeowners insurance, mortgage insurance when applicable, and any HOA amount you enter.
Solve backward for price
The calculator tests purchase prices until the estimated monthly housing payment fits inside the available monthly budget.
Simple DTI Example
$1,000 monthly income + $75 monthly debt
At a 50% debt ratio, the maximum total monthly debt is $500. Subtract $75 of existing debt and the estimated housing-payment allowance is $425 per month.
$1,000 × 50%= $500$500 − $75 debt= $425 housing
Financing Assumptions
What changes when the down payment is below 20%
Credit score 720 or below
With less than 20% down, the calculator uses an FHA-style assumption: the selected conforming FICO/LTV rate minus 0.375 percentage points, 1.75% upfront mortgage insurance financed into the principal-and-interest calculation, and 0.55% annual monthly mortgage insurance.
Credit score above 720
With less than 20% down, the calculator uses simplified conventional mortgage-insurance tiers. A down payment between tiers rounds down to the lower bucket.
3%–4.99% down0.55%
5%–9.99% down0.40%
10%–14.99% down0.25%
15%–19.99% down0.19%
20%+ downNone
Taxes + homeowners insurance
The calculator estimates these together at 1.45% of the purchase price annually, divided by 12. On a $400,000 home that is about $483.33 per month.
Mortgage Rate Context
See the broader rate trend
The calculator itself reads the site's stored Optimal Blue/FRED mortgage-rate data. The widget below provides additional market context and historical movement.
Common Questions
What this estimate can and cannot tell you
Why can a lender's preapproval be different from this number?
A lender may use different debt-ratio limits, rate pricing, mortgage-insurance pricing, tax estimates, insurance quotes, loan programs, reserve requirements and credit-history rules. The property itself can also change the final payment.
What should I count as monthly debt?
Use recurring obligations that are generally included in mortgage underwriting, such as auto loans, student loans, minimum credit-card payments, personal loans and other installment obligations. A lender can tell you exactly which liabilities count in your situation.
Does a higher calculated buying power mean I should spend that much?
No. Qualification and comfort are different questions. Your own budget should also account for utilities, maintenance, savings goals, childcare, travel, lifestyle spending and the cash reserves you want after closing.
What mortgage term does the calculator use?
The principal-and-interest calculation uses a 30-year amortization because the rate source and FICO/LTV rate tiers used here are 30-year conforming mortgage indices.
Can down payment assistance increase my buying power?
Potentially, but the effect depends on the program. Assistance can change cash to close, loan structure, rate, monthly payment or resale restrictions. Review the down payment assistance guide separately instead of assuming the full assistance amount simply adds to the purchase price.
Ready for the Real Number?
Turn the estimate into an actual buying plan.
A calculator is useful for setting a range. The next step is comparing the payment, cash to close, loan options and homes available at that price point so you know what the number means in the real market.