• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

How much mortgage payment can I afford?

When determining how much mortgage payment you can afford, it's crucial to carefully consider your financial situation, income, expenses, and long-term financial goals. As a general guideline, most financial experts recommend that your monthly mortgage payment should not exceed 28-30% of your gross monthly income.

Lenders often use a debt-to-income (DTI) ratio of 43% or lower as a benchmark. However, it's essential to conduct a thorough assessment of your own financial situation and budget to ensure that the mortgage payment is manageable without compromising your other financial priorities.

[Skip to Content]

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

Maximum Mortgage Calculator

How is mortgage eligibility determined?

Mortgage eligibility is determined by multiple factors, including credit score, income and employment stability, debt-to-income (DTI) ratio, down payment, loan-to-value (LTV) ratio, property appraisal, and other relevant considerations.

Using a mortgage income calculator can help assess your eligibility for a mortgage loan. These factors are evaluated to determine a borrower's ability to repay the loan and assess the risk involved. Seeking guidance from a qualified mortgage lender can provide insights on your eligibility based on these factors, independent of a specific lender's policies.

Need cash? Tap into your home equity

As home prices have increased, the average homeowner is sitting on a record amount of home equity. Savvy homeowners are tapping into their equity to consolidate debt, pay for home improvements, or tackle unexpected expenses. Rocket Mortgage, the nation's largest mortgage lender, offers competitive rates and expert guidance.

Get Started

Mortgage affordability FAQ

Does your debt-to-income ratio impact affordability?

Absolutely! Lenders use the DTI ratio as a crucial factor to assess your ability to repay the mortgage.

A higher DTI ratio, indicating a larger portion of your income being allocated toward debts, may impact your affordability negatively, as it leaves less income available for mortgage payments. In contrast, a lower DTI ratio is generally preferred by lenders, as it signifies a lower risk of default and a higher level of affordability for the mortgage.

How does your credit score impact mortgage affordability?

Your credit score has a significant impact on your house affordability. A higher credit score generally indicates a lower risk to lenders, resulting in more favorable loan terms and interest rates. You may also qualify for a larger loan amount.

It's important to regularly monitor and improve your credit score to maximize your chances of obtaining favorable mortgage terms. Get a free credit score from reputable credit bureaus to assess your creditworthiness accurately.

Does the down payment amount impact how much house I can afford?

Yes, how much you put down on a mortgage will impact how much house you can afford, especially for first-time home buyers. Many lenders require a minimum down payment, which is usually a percentage of the home's purchase price.

A larger down payment may allow you to afford a more expensive house or qualify for better mortgage terms. Some first-time homebuyer programs offer down payment assistance, which can further impact your affordability. Consider your down payment carefully when budgeting for a home purchase.

What upfront costs must I consider when buying a house?

When buying a house, it's essential to consider upfront costs beyond the purchase price and down payment. These may include closing costs, which typically include fees for appraisal, inspection, title search, and attorney services.

Additionally, there may be costs for property taxes, homeowner's insurance, and potential HOA fees.

Tips for improving your home affordability

First, focus on maintaining a healthy credit score to qualify for the best mortgage rates. Saving for a larger down payment can also reduce your monthly mortgage payment.

It's worth shopping around for lenders and mortgage options to find the best rates and terms.

Finally, keeping a stable employment history and managing debts responsibly can positively impact your home affordability.


Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

What's Next

Sigrid Forberg Associate Editor

Sigrid’s is Moneywise.com's associate editor, and she has also worked as a reporter and staff writer on the Moneywise team.


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.