Free Home Affordability Calculator Template | Find Your Price Range
Calculate the maximum home price you can afford. Analyze mortgage payments, DTI ratios, and down payment impact on affordability.
Download TemplateA home affordability calculator template is a free spreadsheet that determines the maximum home price you can afford based on income and debt. It uses the 28/36 debt-to-income rule and analyzes down payment impact to show realistic home price range.
What You Get
3 sheets: Income Analysis, Debt Analysis, Affordability Assessment
- 28/36 rule calculator
- DTI analysis
- Down payment impact
- Affordability assessment
Frequently Asked Questions
What is the 28/36 debt-to-income rule?
28% of gross income = max housing expense, 36% = max total debt (including housing). Banks use these limits for mortgages.
How much house can I afford on my income?
Depends on debt-to-income ratio. If you earn $7,000/month and have $500 debt: max housing = $2,000/month at 28% rule.
What counts toward my debt-to-income ratio?
All monthly debt payments: car loans, student loans, credit cards, personal loans, plus proposed mortgage payment.
How does a down payment affect home affordability?
Larger down payment = lower mortgage payment = can afford more expensive home or lower monthly burden.
Do I need 20% down to buy a home?
No, minimums are 3-5% for conventional loans, 0% for VA loans. Down payment <20% means PMI (extra monthly insurance).
What if my debt-to-income ratio is too high?
Pay down debt before buying, increase income, or buy less expensive home. This template shows all options.
How much should I spend on a home as percent of income?
Conservative = 25% of gross income for housing. 28% is maximum (tight). 25% leaves room for life.
What is PMI and when do I pay it?
Private Mortgage Insurance protects lender if you default. Required if down payment <20%. Costs 0.5-1% annually.
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