Question 1

How much house can I afford?

Accepted Answer

A common guideline is the 28% rule: your total monthly housing payment (principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income. Lenders also look at the 43% rule, where all debt payments combined stay under 43% of income. Use the affordability quiz to estimate your personalized price range based on income, savings, debt, and credit score.

Question 2

How much are closing costs when buying a house?

Accepted Answer

Closing costs typically run 2% to 5% of the loan amount. They include lender fees (origination, underwriting), title insurance and escrow fees, government recording and transfer taxes, and prepaid items like interest and insurance escrow. FHA and VA loans add upfront fees: FHA charges a 1.75% upfront mortgage insurance premium and VA charges a funding fee around 2.3%.

Question 3

What is a good down payment on a home?

Accepted Answer

20% down lets you avoid private mortgage insurance (PMI) on a conventional loan, but it is not required. Conventional loans can go as low as 3% to 5% down, FHA loans as low as 3.5%, and VA loans can require 0% down for eligible borrowers. A larger down payment lowers your monthly payment and total interest paid.

Question 4

How is my monthly mortgage payment calculated?

Accepted Answer

Your monthly payment is made up of principal and interest (based on loan amount, interest rate, and term), plus property taxes and homeowner's insurance, often collected in escrow. This is commonly called PITI. The mortgage calculator breaks down each component and shows your total monthly payment instantly.

Question 5

What income do I need to buy a house?

Accepted Answer

Using the 28% rule, the income needed equals your total monthly housing payment divided by 0.28, times 12. For example, a $2,800 monthly payment suggests roughly $120,000 in annual income. The calculator estimates the minimum income needed for any home price and loan scenario.

How much house can you afford?Find out before you buy.

How much house can you afford?
Find out before you buy.