Home Affordability Calculator

Home affordability refers to the ability of households or individuals to afford the costs associated with owning or renting a home. These include mortgage payments, property taxes, and utilities. It is an important concept because access to affordable housing is crucial for individuals’ and families’ financial well-being, stability, and quality of life.

Home affordability matters for several reasons:

  1. Financial stability: When housing costs are too high relative to household income, it can strain budgets. It can leave little room for other essential expenses like food, healthcare, transportation, and education. This can lead to financial stress and vulnerability.
  2. Quality of life: Unaffordable housing can force families to live in overcrowded or substandard conditions. It can force families to relocate to areas with longer commutes and fewer amenities. This can negatively impacting their overall quality of life.
  3. Economic mobility: High housing costs can make it difficult for individuals and families to save for emergencies, invest in education or career development, or build wealth through homeownership, which can limit their economic mobility and opportunities.
  4. Social implications: Lack of affordable housing can contribute to homelessness, overcrowding, and the displacement of lower-income communities. This exacerbates social and economic inequalities.
  5. Economic impact: When a significant portion of a population struggles with housing affordability, it can have broader economic implications, such as limiting consumer spending, impacting labor mobility, and straining social services and government resources.

Home affordability is typically measured by comparing housing costs to household income. For example, housing is often considered unaffordable if it exceeds 30% of a household’s gross income. Policymakers, urban planners, and housing advocates closely monitor affordability trends. They advocate for policies and programs that promote the development and preservation of affordable housing options.

Gross Annual Income (before tax)
Maximum Housing Expense %
(M1) Max Monthly Payment Based on Income
Monthly Debts

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Current Monthly Debts
Maximum Debt-to-Income Ratio
(M2) Max Monthly Payment Based on DTI
Maximum Monthly Payment (lower of M1,M2)
Monthly Housing Expenses
Property Tax (Monthly)
Home Owners Insurance (Monthly)
PMI (private mortgage insurance)
HOA Fees
Other (Utilities, Repairs, etc.)
(M3) Max PI Payment Based on Expenses hac-dollar
Available Funds
Available Funds
Fixed Closing Costs
Variable Closing Costs (based on price)
Minimum Down Payment
Maximum Home Price Based on Funds
(M4) Max PI Payment Based on Funds
Maximum PI Payment (lower of M3,M4)
Term of Mortgage (years)
Annual Interest Rate
Loan Amount Based on Max PI Payment
Down Payment Based on Available Funds
Total Estimated Closing Costs
Maximum Home Price
% of Home Price Depreciable
Years to Depreciate
Annual Depreciation (straight-line)

You Can Afford A House Up To

/ Month
PI Payment-
Property Tax-

Loan Amount

Down Payment

Est. Closing Costs

Home Affordibility Calculator - By Hayyat Apps

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