Affordability calculator
Find room in your budgetBudget BusterSee a price range based on your income and monthly debts, using the debt-to-income guideline for each loan type, with taxes, insurance and mortgage insurance included.
How this calculator works
It finds the highest price where your full house payment plus your current debts stays within the guideline for the loan type you choose. The payment uses the same engine as your Mortgage Plan: principal and interest, taxes, insurance, and the mortgage insurance or upfront fee for that program. If your down payment is below a program's minimum, it uses the minimum.
Taxes and insurance vary widely in Southwest Colorado. Acreage, wildfire areas and older homes can raise insurance well above a default estimate, and that lowers the price range. Use an actual quote when you have one.
To learn more, see how much house you can afford, how credit affects your options and the four main loan types.
Learn more
Loans it explains
Common questions
What is debt-to-income (DTI)?
Debt-to-income is your monthly debt payments, including the new house payment, divided by your gross monthly income. Lenders use it to judge how large a payment you can afford.
Which debts count?
Lenders count the minimum payments that appear on your credit report, such as credit cards, car loans, student loans and personal loans, plus any child support or alimony you pay. Utilities, phone and groceries do not count, but they belong in your own budget.
Why does the range change by loan type?
Each loan type treats the ratio its own way, and each has its own mortgage insurance. Conventional loans approved through Fannie Mae's automated system go up to 50% of income for all debts; manually underwritten loans 36%, or up to 45% with strong credit and reserves. FHA sets no fixed maximum for loans its automated system approves. Manually underwritten FHA loans run 31% for housing and 43% for all debts, and up to 40% and 50% with compensating factors. VA sets no maximum debt-to-income ratio. 41% is VA's standard; above it, the lender looks closely at residual income, the money left each month after the house payment, debts and taxes. USDA's guideline is 29% of income for housing and 41% for all debts. Its automated system can approve higher ratios; a manual approval up to 32% and 44% needs a 680 score and a compensating factor. The range uses 50% for conventional, 57% for FHA and VA (the working figure your Mortgage Plan uses) and 44% for USDA.
Should I borrow the top of the range?
Not always. The top of the range is what a lender may approve, and it may be more than fits your budget. The more comfortable figure keeps all debts at 36% of income, a common guideline for comfort. Your Mortgage Plan shows both and leaves the choice to you.
See it with your own numbers
Daniel builds your Mortgage Plan from what you tell him: every loan option that fits, side by side.