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Maximum Home Price
Discover how much house you can afford based on your income, debts, and down payment. Get personalized recommendations with monthly payment breakdowns including principal, interest, taxes, and insurance.
Home affordability is determined by several key factors. Lenders use the Debt-to-Income (DTI) ratio to assess how much of your monthly income goes toward debt payments, including your potential mortgage.
28%: Maximum housing costs (PITI) as % of gross income
36%: Maximum total debt (housing + other debts) as % of gross income
This conservative approach ensures you have enough left for savings and emergencies.
P: Principal (loan amount paid down)
I: Interest (cost of borrowing)
T: Taxes (property taxes)
I: Insurance (homeowners insurance)
A credit score above 750 gets you the best interest rates. Below 650 may require higher down payments or result in loan denial.
Beyond down payment, budget for closing costs (2-5% of price), moving expenses, immediate repairs, and furniture.
Pre-approval shows sellers you're serious and helps you understand your actual buying power, not just affordability calculations.
Include maintenance (1-2% of home value annually), utilities, HOA fees, and potential renovation costs in your budget.
Just because you can afford a certain amount doesn't mean you should spend it all. Leave room for savings and life changes.
Interest rates and fees vary significantly between lenders. A 0.5% difference on a ₹50L loan saves over ₹5L in interest.
A general rule of thumb is that your home price should be 3-5 times your annual household income. However, this depends heavily on your down payment, existing debts, and interest rates. Use our calculator above for a personalized estimate.
Most lenders prefer a DTI ratio of 36% or less, with housing costs (PITI) not exceeding 28% of gross income. Some lenders allow up to 43% for qualified borrowers, but lower is always better for financial stability.
Ideally, save 20% of the home price to avoid PMI (Private Mortgage Insurance) and get better interest rates. However, many loans allow 10-15% down. First-time buyers may qualify for programs requiring as little as 5% down.
Yes, if possible. High-interest debt (credit cards, personal loans) reduces your buying power and increases your DTI ratio. Paying off debts can significantly increase how much home you can afford and improve loan terms.
Budget for: property taxes, homeowners insurance, HOA fees (if applicable), maintenance (1-2% of home value annually), utilities, closing costs (2-5% of price), and an emergency fund for unexpected repairs.
15-year mortgages have higher monthly payments but lower interest rates and total interest paid. 30-year mortgages offer lower monthly payments and more flexibility. Choose based on your budget, goals, and ability to handle higher payments.