House Affordability Calculator

Use our free house affordability calculator to find out how much home you can realistically afford in 2025 based on your monthly budget. Includes property taxes, insurance, HOA, maintenance, and current ~6.25% mortgage rates for accurate results.

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How can you really buy an affordable house?

Buying a house is exciting, but it's also a massive commitment. As we wrap up 2025, with rates sitting between 6.1% and 6.3%, the math has changed. It's no longer just about the sticker price; it's about making sure you still have money left over for life after you pay the mortgage.

Most calculators just look at your salary and give you a huge, scary number. We do things differently. We factor in the "hidden" stuff that actually shows up on your bill--like property taxes (usually 1-1.5%), homeowners insurance (averaging $2,000+), and those inevitable HOA fees or repair costs. Our tool works backward from what you're comfortable paying every month, helping you find a home that feels like a sanctuary, not a financial burden.

Why Those "Old" Mortgage Rules Don't Always Work Anymore

You've probably heard the classic advice: "Spend 28% of your income on your house." It's a nice starting point, but in 2025, it feels a little disconnected from reality. A percentage on a spreadsheet doesn't know your life, and it definitely doesn't know your zip code. Here's why a more personal approach works better:
Taxes vary wildly: A 1.1% national average sounds fine until you realize you're paying 2.3% in a state like New Jersey or Illinois. That's a huge chunk of your monthly budget that a "standard rule" ignores.
Insurance is getting pricier: Homeowners insurance has jumped significantly lately. Whether it's $2,100 or $2,800 a year, that's money you have to account for every single month.
The "Pricey House" Trap: The more expensive the home, the more everything else costs, too. Maintenance, taxes, and insurance all scale up as the price tag grows.
You think in dollars, not percentages: Most people don't go into a house hunt saying, "I want to spend 28% of my gross income." They say, "I can afford exactly $3,200 a month."
Our calculator flips the script. You tell us what you can actually spend each month, and we'll subtract the taxes, insurance, and fees first. That way, you get a "true" home price that won't leave you house-poor.

What's Actually Moving the Needle on Your Home Budget?

The Interest Rate "Swing": Rates have calmed down a bit from their peaks, sitting in the mid-6% range right now. It might not sound like a huge deal, but even a tiny 0.5% dip can boost your buying power by tens of thousands of dollars. It's the difference between a "maybe" and a "yes" on that dream kitchen.

The "Sneaky" Costs (Taxes & Insurance): These are the numbers that catch people off guard. Depending on where you live, property taxes can range from a small monthly fee to a massive bill (looking at you, New Jersey and Illinois!). Add in insurance-which is averaging over $2,100 lately—and you've got a couple of extra hundred dollars to account for every month.

The Down Payment Dilemma: You've probably heard you need 20% down to avoid that extra "PMI" fee, but that's not your only option. Our calculator lets you play with different percentages or flat dollar amounts so you can see what actually fits your savings.

The "Oops" Fund (Maintenance): Owning a home means the buck stops with you when the AC dies. A good rule of thumb is to set aside 1-2% of your home's value every year for repairs. It's the one thing most people forget to budget for, but your future self will thank you for it.

How to Get Your Budget "House-Ready"

If the current market feels a bit daunting, don't worry-there are still plenty of ways to tip the scales in your favor. Here's how to boost your buying power:

Polish your credit score: Even a small bump in your score can move you into a better "tier," which could save you thousands in interest over the years.

Build that cushion: The more you can put down upfront, the lower your monthly bill will be. Aiming for 10-20% is great, but don't let it stop you if you aren't there yet.

Explore "hidden" help: Don't leave money on the table! Look into first-time buyer grants, FHA loans, or state-level incentives. They are there to help people just like you get over the finish line.

Cast a wider net: If your dream neighborhood is out of reach, check out the "next town over" or looking in high-value areas like the Midwest or South. You might be surprised at how much further your dollar goes.

The "Strategic" ARM: If you aren't planning on staying in this house for 30 years, an adjustable-rate mortgage (ARM) might offer a lower initial rate that fits your budget better right now.

Get your "golden ticket": Pre-approval isn't just a paperwork step-it shows sellers you're serious and gives you a crystal-clear idea of what you can actually spend.

Plan for the "finish line" fees: Remember that closing costs usually add another 2-5% to the price. It's the "forgotten expense," so make sure you have a little extra tucked away for the big day.