Maximum home price
$311,356
$40,000 down + $271,356 loan at 7.03% for 30 years · $2,333 a month for housing
- Principal & interest
- $1,810.81
- Property tax
- $259.46
- Home insurance
- $150.00
- PMI
- $113.06
- Maximum monthly housing payment
- $2,333.33
- Down payment
- $40,000 (12.8% of the price)
- Loan amount
- $271,356
- Closing costs to budget (2%–5%)
- $6,227 – $15,568
- Cash needed at closing (estimate)
- $46,227 – $55,568
With 12.8% down, lenders typically require private mortgage insurance. It adds $113.06 a month at 0.5% a year and is included above.
Your debt-to-income limits
- Gross monthly income
- $8,333
- Front-end limit: 28% for housing
- $2,333
- Back-end limit: 36% for all debts, minus your $500 of debts
- $2,500
- Your housing budget (front-end limit applies)
- $2,333
Front-end DTI (limit 28%)
28%
Back-end DTI (limit 36%)
34%
The front-end limit (28% of income for housing) sets your budget. Your other debts would have to exceed $667 a month before the back-end limit became the tighter one.
How the interest rate changes your budget
At 6.03%
$335,947
At 7.03% (your rate)
$311,356
At 8.03%
$289,751
Maximum home price by household income
| Annual income | Housing budget / mo | Max home price | Limit that applies |
|---|---|---|---|
| $50,000 | $1,000 | $148,794 | Back-end |
| $75,000 | $1,750 | $237,732 | Back-end |
| $100,000 | $2,333 | $311,356 | Front-end |
| $125,000 | $2,917 | $384,979 | Front-end |
| $150,000 | $3,500 | $458,603 | Front-end |
| $200,000 | $4,667 | $605,850 | Front-end |
| $250,000 | $5,833 | $753,097 | Front-end |