Your Numbers
How This Estimate Works
- The 28% rule (front-end): lenders often look for your housing payment to be no more than about 28% of your gross monthly income.
- The 36% rule (back-end): lenders often look for your housing payment plus your other monthly debts to be no more than about 36% of your gross monthly income. So the back-end limit is 36% of gross monthly income minus your monthly debts.
- Your maximum is the lower of the two. Whichever rule gives the smaller number is the one that sets your limit — the calculator tells you which one it was.
- The price comes from the payment. Your maximum monthly payment, minus the tax and insurance estimates you entered, leaves the amount available for principal and interest. The calculator works backward through the mortgage formula to find the loan amount that payment supports, then adds your down payment to get the home price.
- Comfortable is about 10% below the maximum. The maximum is a ceiling, not a target. The comfortable price leaves breathing room in the budget.
What This Number Does — and Does Not — Include
- Included: principal and interest, plus the property tax and homeowners insurance estimates you entered.
- Not included: mortgage insurance (PMI) — this estimate excludes PMI entirely — and HOA dues. Both can add a meaningful amount to the real monthly payment, and they vary by home, county, and loan program.
- The rate is an example you can change. The 6.5% shown is an example rate, not a current rate and not a quote. Rates move, and your rate depends on your credit, your down payment, the loan program, and the market on the day you lock. Enter a rate you were quoted, or try a few to see how the price moves.
- Estimate only. This is a math tool, not a quote, not a pre-approval, and not a promise of any rate, price, payment, or approval. Your exact figure comes from Bryan, after he looks at your full situation.
Want real numbers for your situation? Start an application, or call or text 515-770-2491 and talk it through first.
Disclaimers
Personal NMLS #1820018. Bryan Curtis is a loan officer at Pre Approved Mortgage. Only his personal NMLS number is listed here; no company NMLS number is stated.
Estimate only: results are calculated from the numbers you enter, using the common 28% / 36% guidelines. They exclude mortgage insurance (PMI) and HOA dues, and they are not a quote, a pre-approval, or a promise of any rate, price, payment, or loan approval. Actual payments depend on lender underwriting, program guidelines, and the terms of your loan.