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Home Affordability Calculator

Understand your home affordability. Make your own decisions. Take control of your future.

Real affordability — including PMI, closing costs, cash to close, and a Home Readiness Score.

Household income

≈ $130,000/yr · $10,833/mo · $62.50/hr

Est. take-home $87,518/yr · $7,293/mo (33% to tax)

Monthly debt payments (excl. housing)$

$0$5,000+

Down payment available$

$0$400,000+

Home price$

$100,000$2,000,000+

Interest rate (%)%

3%12%

Property tax rate (%/yr)%

0.3%3.5%

Monthly HOA$

$0$1,000+

State

Credit score

I have 3–6 months emergency fund (separate from down payment)

Total monthly housing cost

$3,724

Principal + Interest: $2,794Property tax: $500PMI: $280

Front-end DTI

34.4%

⚠ Moderate

Back-end DTI

39.0%

✗ High risk

Cash to close (estimated)

$92,500

Down payment $80,000 + closing costs ~$12,500

Home Readiness Score

47/100

Getting Close

DTI Health15/25

Down Payment Strength12/20

Emergency Fund Coverage0/20

Credit Score15/20

Debt Load5/15

PMI of $280/month applies until loan balance reaches 80% of home value.

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How this is calculated

We compute the full monthly cost of a home (PITI + PMI + HOA) and your debt-to-income ratios to gauge what you can comfortably afford.

The steps

Monthly principal & interest from the standard amortization formula on the loan amount.
Add property tax, insurance, PMI (if down payment < 20%), and HOA → total monthly payment.
Front-end DTI = housing ÷ gross monthly income; back-end DTI = (housing + other debts) ÷ income.
Estimate cash to close = down payment + closing costs.

Assumptions

Default property-tax/insurance/PMI rates; 30-year loan unless changed.
Lenders generally prefer back-end DTI ≤ ~43%.

Good to know

Rates and fees vary by lender and location; a planning estimate, not a pre-approval.

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Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →