Mortgage Buying Power Calculator
See how an interest-rate change or payment target can affect an estimated loan amount. Use the result to compare home-price scenarios before requesting a personalized preapproval or rate quote.
HOME PURCHASE PLANNING
Mortgage Buying
Power Calculator
Understand your buying power.
Build a budget that fits your life.
Explore an estimated housing payment and purchase price using your income, monthly debts and interest rate.
Planning estimates, not a preapproval or rate quote. This calculator assumes a 30-year loan, 20% down payment, property taxes and homeowners insurance.
Review your buying power ↗UNDERSTAND YOUR STARTING POINT
Turn income into a purchase plan.
Start with income and debts
Enter your gross household income before tax and choose yearly or monthly. Add existing monthly debt payments, such as auto loans and credit cards.
Compare one change at a time
Enter the interest rate you want to evaluate. Hold income and debts constant to see how a different rate changes the estimated purchase price.
Choose a comfortable budget
An estimated maximum is not necessarily a comfortable payment. Allow for savings goals, home maintenance, other expenses and changing taxes, insurance or HOA dues.
READ YOUR RESULTS
A useful estimate. A clearer next step.
What the estimated budget covers
The calculator starts with 50% of gross monthly income and subtracts your existing monthly debts. The resulting housing-payment estimate includes principal, interest, estimated property taxes and homeowners insurance.
How the price is estimated
The purchase-price estimate uses that housing payment with a 30-year loan and 20% down payment. It assumes property taxes of 1.1% of price per year and homeowners insurance of $180 per month.
These are fixed planning assumptions, not loan-approval guidelines or a complete payment quote. Mortgage insurance and HOA dues are not included in this estimate. Actual taxes, insurance, loan limits and program requirements may differ.
BEFORE YOU CHOOSE A HOME PRICE
Understand the details
behind your buying power.
Explore home purchase loans ↗Is this result a preapproval?
No. Estimated buying power is not a preapproval or a guarantee of qualification. Qualification also depends on verified income, debts, credit, assets, property expenses, loan limits and loan-program guidelines.
How can a rate change affect the loan amount?
For a separate illustrative principal-and-interest budget of $3,000 per month over 30 years, a 6.50% rate supports approximately $474,600 in loan amount; 6.00% supports approximately $500,400. The difference is approximately $25,700. This example is not a rate quote and excludes taxes, homeowners insurance, mortgage insurance and HOA dues.
Unlike that principal-and-interest-only example, the calculator above includes its stated tax and insurance assumptions. Once other housing expenses are included, less of the total budget remains available for principal and interest.
How is buying power different from a payment calculation?
A payment calculator starts with a home price and estimates a payment. A buying-power estimate works backward from an available payment toward a loan amount or home price. Here, the available housing payment is estimated from your income and debts, with the fixed assumptions shown above.
What should I consider beyond the estimate?
The maximum mortgage someone may qualify for is not necessarily the payment they will be comfortable carrying. Compare the estimated payment with your other expenses, savings goals, available funds and home-maintenance budget. Account for the possibility that taxes, insurance or HOA dues may change.
LOCAL KNOWLEDGE. PERSONAL GUIDANCE.
Get a personalized
buying-power review.
Compare the estimated payment with verified income, monthly debts, available funds and current loan options before making a home-price decision in SLO County or elsewhere in California.
Sean Mertens · Assist Home Loans
NMLS #2047444
MORE WAYS TO PLAN
Get a Personalized Buying-Power Review
How to Use the Buying Power Calculator
- Enter the monthly principal-and-interest payment or housing budget you want to evaluate.
- Enter an illustrative interest rate and mortgage term.
- Add the expected down payment.
- Include property taxes, homeowners insurance, mortgage insurance and HOA dues when the calculator provides those inputs.
- Compare rate or budget changes one at a time.
A payment calculator starts with a home price and estimates a payment. A buying-power calculator starts with a payment target and works backward toward an estimated loan amount or home price.
Understanding the Result
Estimated loan amount
The principal that fits the entered payment, rate and term assumptions.
Estimated home price
Adds the entered down payment to the estimated loan amount.
Rate comparison
Shows how changing the interest rate while holding the payment constant can change the estimated loan amount.
Planning estimate
Estimated buying power is not a preapproval. Qualification also depends on verified income, debts, credit, assets, property expenses, loan limits and program guidelines.
Worked Example
Illustrative example only—not a rate quote.
With a principal-and-interest budget of $3,000 per month and a 30-year term:
- At 6.50%, the estimated supported loan amount is approximately $474,600
- At 6.00%, the estimated supported loan amount is approximately $500,400
- Estimated difference: approximately $25,700 in loan amount
This example excludes property taxes, insurance, mortgage insurance and HOA dues. Once those expenses are included, less of the total housing budget remains available for principal and interest.
Buying Power vs. a Comfortable Budget
The maximum mortgage someone may qualify for is not necessarily the payment they will be comfortable carrying. Consider other expenses, savings goals, home maintenance and the possibility that taxes, insurance or HOA dues may change.
Get a Personalized Buying-Power Review
Compare the estimated payment with verified income, monthly debts, available funds and current loan options before making a home-price decision.