{"tool":{"slug":"house-affordability","name":"How much house can I afford","version":"2026-08-21","canonicalUrl":"https://carlo.finance/tools/house-affordability?debts=500","jsonUrl":"https://carlo.finance/tools/house-affordability.json?debts=500","pageUrl":"https://carlo.finance/tools/house-affordability","parameters":[{"key":"income","label":"Annual gross household income","unit":"usd","min":0,"max":100000000,"default":100000,"sourceId":null,"help":"Before taxes, everyone on the mortgage. The default is an example, not a statistic."},{"key":"debts","label":"Monthly debt payments","unit":"usd-per-month","min":0,"max":1000000,"default":0,"sourceId":null,"help":"Car loans, student loans, minimum card payments, child support. Not utilities or groceries."},{"key":"down","label":"Down payment","unit":"usd","min":0,"max":100000000,"default":40000,"sourceId":null,"help":"Cash you will put toward the price. Under 20% of the price adds private mortgage insurance."},{"key":"rate","label":"Mortgage rate","unit":"percent","min":0,"max":30,"default":6.65,"sourceId":"pmms","help":"Annual interest rate on the loan."},{"key":"term","label":"Loan term","unit":"years","min":1,"max":40,"default":30,"sourceId":null,"integer":true,"help":"Years to repay. 30 and 15 are the common choices."},{"key":"taxRate","label":"Property tax rate","unit":"percent","min":0,"max":10,"default":0.888,"sourceId":"property-tax","help":"Annual property tax as a percent of the home's value."},{"key":"insurance","label":"Homeowners insurance","unit":"usd","min":0,"max":1000000,"default":1600,"sourceId":"insurance","help":"Annual premium."},{"key":"hoa","label":"HOA dues","unit":"usd-per-month","min":0,"max":100000,"default":0,"sourceId":null,"help":"Monthly association dues, if any."},{"key":"pmiRate","label":"PMI rate","unit":"percent","min":0,"max":5,"default":0.6,"sourceId":"pmi","help":"Annual private mortgage insurance as a percent of the loan. Only charged when the down payment is under 20%. Default is the middle of Freddie Mac's published range."},{"key":"closingRate","label":"Closing costs","unit":"percent","min":0,"max":15,"default":3.5,"sourceId":"closing","help":"One-time fees paid at closing as a percent of the price: lender, title, appraisal, and prepaid tax and insurance. Paid on top of the down payment; does not change the price you can afford. Default is the middle of Freddie Mac's published range."},{"key":"dti","label":"Maximum debt-to-income ratio","unit":"percent","min":1,"max":100,"default":36,"sourceId":"dti","help":"All monthly debt, including the new house payment, as a percent of gross monthly income. 36% is the conventional manual-underwriting ceiling; 45% and 50% are the stretch cases."},{"key":"frontDti","label":"Maximum housing ratio","unit":"percent","min":1,"max":100,"default":null,"sourceId":null,"help":"Optional. Caps the house payment alone as a percent of gross monthly income (the 28 in the 28/36 rule). Off by default; Fannie Mae's Selling Guide sets a total ratio only."}]},"inputs":{"income":100000,"debts":500,"down":40000,"rate":6.65,"term":30,"taxRate":0.888,"insurance":1600,"hoa":0,"pmiRate":0.6,"closingRate":3.5,"dti":36,"frontDti":null},"result":{"maxPrice":345114,"loanAmount":305114,"downPayment":40000,"ltv":0.8841,"monthlyIncome":8333.33,"housingBudget":2500,"bindingConstraint":"dti","monthly":{"principalAndInterest":1958.73,"propertyTax":255.38,"insurance":133.33,"pmi":152.56,"hoa":0,"total":2500},"upfront":{"downPayment":40000,"closingCosts":12079,"total":52079},"ratios":{"backEnd":0.36,"frontEnd":0.3},"pmiApplies":true},"drivers":[{"key":"income","label":"Income","step":10000,"priceDelta":39166,"sentence":"Each $10,000 of annual income adds $39,166 to the maximum price."},{"key":"debts","label":"Monthly debts","step":100,"priceDelta":-13055,"sentence":"Each $100 of monthly debt takes $13,055 off the maximum price."},{"key":"hoa","label":"HOA dues","step":100,"priceDelta":-13055,"sentence":"Each $100 of monthly HOA takes $13,055 off the maximum price."},{"key":"taxRate","label":"Property tax rate","step":0.25,"priceDelta":-9138,"sentence":"Each 0.25 point of property tax takes $9,138 off the maximum price."},{"key":"down","label":"Down payment","step":10000,"priceDelta":9034,"sentence":"Each $10,000 of down payment adds $9,034 to the maximum price."},{"key":"rate","label":"Mortgage rate","step":0.25,"priceDelta":-6486,"sentence":"Each 0.25 point on the rate takes $6,486 off the maximum price."}],"sensitivity":{"byDti":[{"dti":28,"maxPrice":258078,"monthlyTotal":1833.33},{"dti":36,"maxPrice":345114,"monthlyTotal":2500},{"dti":43,"maxPrice":421271,"monthlyTotal":3083.33},{"dti":45,"maxPrice":443030,"monthlyTotal":3250},{"dti":50,"maxPrice":497427,"monthlyTotal":3666.67}],"byRate":[{"rate":5.65,"maxPrice":373278,"monthlyTotal":2500},{"rate":6.15,"maxPrice":358737,"monthlyTotal":2500},{"rate":6.65,"maxPrice":345114,"monthlyTotal":2500},{"rate":7.15,"maxPrice":332350,"monthlyTotal":2500},{"rate":7.65,"maxPrice":320387,"monthlyTotal":2500}],"byTerm":[{"term":15,"maxPrice":272921,"monthlyTotal":2500},{"term":20,"maxPrice":306050,"monthlyTotal":2500},{"term":30,"maxPrice":345114,"monthlyTotal":2500}]},"assumptions":[{"key":"income","label":"Annual gross household income","value":100000,"unit":"usd","provided":false,"source":null},{"key":"debts","label":"Monthly debt payments","value":500,"unit":"usd-per-month","provided":true,"source":null},{"key":"down","label":"Down payment","value":40000,"unit":"usd","provided":false,"source":null},{"key":"rate","label":"Mortgage rate","value":6.65,"unit":"percent","provided":false,"source":{"id":"pmms","name":"Freddie Mac Primary Mortgage Market Survey","url":"https://www.freddiemac.com/pmms","asOf":"2026-08-20","note":"30-year fixed-rate mortgage average 6.65%; 15-year 5.95%."}},{"key":"term","label":"Loan term","value":30,"unit":"years","provided":false,"source":null},{"key":"taxRate","label":"Property tax rate","value":0.888,"unit":"percent","provided":false,"source":{"id":"property-tax","name":"NAHB Eye On Housing, Property Taxes by State, 2024 (American Community Survey)","url":"https://eyeonhousing.org/2025/11/property-taxes-by-state-2024/","asOf":"2025-11-26","note":"National effective property tax rate $8.88 per $1,000 of home value (0.888%); average annual bill $4,271, median $3,500."}},{"key":"insurance","label":"Homeowners insurance","value":1600,"unit":"usd","provided":false,"source":{"id":"insurance","name":"NAIC, Examining Homeowner Property Insurance Market Dynamics, 2018 to 2024","url":"https://content.naic.org/sites/default/files/mcas-homeowners-property-insurance-market-dynamics-report.pdf","asOf":"2026-07-31","note":"2024 average homeowners premium per policy: $1,600 countrywide; Northeast $1,396, Midwest $1,476, West $1,600, Southeast $1,818."}},{"key":"hoa","label":"HOA dues","value":0,"unit":"usd-per-month","provided":false,"source":null},{"key":"pmiRate","label":"PMI rate","value":0.6,"unit":"percent","provided":false,"source":{"id":"pmi","name":"Freddie Mac, Breaking down PMI","url":"https://myhome.freddiemac.com/buying/breaking-down-pmi","asOf":"2026-08-21","note":"Private mortgage insurance typically costs $30 to $70 per month for every $100,000 borrowed (0.36% to 0.84% of the loan per year). Required on conventional loans with less than 20% down."}},{"key":"closingRate","label":"Closing costs","value":3.5,"unit":"percent","provided":false,"source":{"id":"closing","name":"Freddie Mac, What are closing costs and how much will I pay?","url":"https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay","asOf":"2026-02-26","note":"Closing costs typically run 2% to 5% of the home purchase price, paid in addition to the down payment."}},{"key":"dti","label":"Maximum debt-to-income ratio","value":36,"unit":"percent","provided":false,"source":{"id":"dti","name":"Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios","url":"https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios","asOf":"2025-04-02","note":"Manually underwritten loans: maximum total DTI 36%, up to 45% with credit score and reserve requirements. Desktop Underwriter: maximum 50%."}},{"key":"frontDti","label":"Maximum housing ratio","value":null,"unit":"percent","provided":false,"source":null}],"sources":[{"id":"pmms","name":"Freddie Mac Primary Mortgage Market Survey","url":"https://www.freddiemac.com/pmms","asOf":"2026-08-20","note":"30-year fixed-rate mortgage average 6.65%; 15-year 5.95%."},{"id":"property-tax","name":"NAHB Eye On Housing, Property Taxes by State, 2024 (American Community Survey)","url":"https://eyeonhousing.org/2025/11/property-taxes-by-state-2024/","asOf":"2025-11-26","note":"National effective property tax rate $8.88 per $1,000 of home value (0.888%); average annual bill $4,271, median $3,500."},{"id":"insurance","name":"NAIC, Examining Homeowner Property Insurance Market Dynamics, 2018 to 2024","url":"https://content.naic.org/sites/default/files/mcas-homeowners-property-insurance-market-dynamics-report.pdf","asOf":"2026-07-31","note":"2024 average homeowners premium per policy: $1,600 countrywide; Northeast $1,396, Midwest $1,476, West $1,600, Southeast $1,818."},{"id":"dti","name":"Fannie Mae Selling Guide B3-6-02, Debt-to-Income Ratios","url":"https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios","asOf":"2025-04-02","note":"Manually underwritten loans: maximum total DTI 36%, up to 45% with credit score and reserve requirements. Desktop Underwriter: maximum 50%."},{"id":"pmi","name":"Freddie Mac, Breaking down PMI","url":"https://myhome.freddiemac.com/buying/breaking-down-pmi","asOf":"2026-08-21","note":"Private mortgage insurance typically costs $30 to $70 per month for every $100,000 borrowed (0.36% to 0.84% of the loan per year). Required on conventional loans with less than 20% down."},{"id":"closing","name":"Freddie Mac, What are closing costs and how much will I pay?","url":"https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay","asOf":"2026-02-26","note":"Closing costs typically run 2% to 5% of the home purchase price, paid in addition to the down payment."}],"warnings":[{"code":"pmi","message":"The down payment is under 20% of the price (loan-to-value 88.4%), so private mortgage insurance is included at 0.6% of the loan per year."}],"disclaimer":"This models a lender's debt-to-income arithmetic with published defaults. It is not a loan approval, a rate quote, or financial advice. Credit score, reserves, loan limits, and local taxes and insurance change the real answer."}