How Much Home Can I Actually Afford?

Buying a home is one of the most exciting—and sometimes overwhelming—milestones in life. As you start browsing listings and imagining your future space, a big question naturally pops up: How much home can I actually afford? Let’s break down the answer in simple, practical terms, and give you a handy tool to help you crunch the numbers with confidence.

Understanding Your Budget: More Than Just the Price Tag

When it comes to affordability, it’s not just about the sticker price of the house. You’ll want to consider:

• Your Income: Lenders typically recommend that your monthly housing costs (including mortgage, taxes, and insurance) stay below 28-30% of your gross monthly income.
• Your Debts: Factor in credit cards, student loans, car payments, and other obligations. Lenders look at your debt-to-income ratio to ensure you’re not overextending yourself.
• Down Payment: The more you put down, the lower your monthly payments—and the more attractive you’ll be to lenders.
• Other Costs: Don’t forget about closing costs, maintenance, utilities, and those little surprises that come with homeownership.

What Does This Look Like in Real Life?

Imagine you and your partner have a combined annual income of $120,000. That’s $10,000 per month before taxes. If you stick to the 30% guideline, you’d want your total monthly housing costs to be no more than $3,000. Now, factor in your other monthly debts, and you’ll have a clearer picture of what feels comfortable—not just on paper, but in your day-to-day life.

Try It Yourself: Mortgage Calculator

Ready to see what your numbers look like? Use the mortgage calculator below to play with different scenarios—adjust the home price, down payment, interest rate, and more. It’s a quick, no-pressure way to find your comfort zone before you start shopping for your dream home.

Final Thoughts: Your Home, Your Comfort Zone

Affordability isn’t just about what you can buy—it’s about what you’ll feel good owning. Take your time, run the numbers, and choose a home that fits your lifestyle and your long-term goals. And if you have questions or want to talk through your options, I’m always here to help!