House Affordability Calculator

House Affordability Calculator

House Affordability Calculator

The House Affordability Calculator is a tool that helps potential home buyers determine the maximum amount they can afford to spend on a house based on their annual income, down payment, interest rate, and loan term.

The calculator uses the 28% rule, which states that a household should spend no more than 28% of its gross monthly income on housing expenses, including mortgage payments, property taxes, and insurance. By inputting these values, the calculator can estimate the maximum mortgage payment a household can afford and the maximum house price based on the desired down payment and loan term. The result is a useful estimate that can help home buyers make informed decisions when shopping for a house and negotiating with lenders.