Home Affordability Estimate
Estimate a home price under a 28/36 monthly budget, with entered loan, tax, insurance, HOA and PMI assumptions.
What This Calculator Does
Estimate a home price whose modeled initial monthly housing costs fit a 28/36 gross-income budget. The calculation includes P&I, a price-based tax allowance, entered insurance and HOA, and your selected PMI assumption. It supports conventional fixed-rate, fully amortizing loans and all-cash purchases, without implying lender approval or a complete household budget.
Who Is This For
For Florida homebuyers and agents comparing purchase scenarios with explicit income, debt, available purchase funds and property-specific cost assumptions. Use it for planning before obtaining a lender's qualifying decision and current property quotes.
How It Works
Enter gross annual income, monthly nonhousing debt and cash available for the purchase price after reserving closing costs and reserves. Enter the nominal loan rate, whole-year amortization term, annual price-based tax allowance and monthly insurance and HOA amounts, including explicit zeros for hypothetical assumptions. Select an annual PMI rate, monthly quote or confirmed exemption assumption. Confirm the scope, then review the selected 28/36 budget, price, initial loan and monthly cost stack. Obtain revised quotes if the modeled loan or property changes.
Frequently Asked Questions
Does the 28/36 rule tell me what a lender will approve?
No. The model uses gross annual income divided by 12, then selects the lower of 28% for housing and 36% less monthly nonhousing debt, with a zero floor. These are planning guidelines, not universal underwriting limits. Lenders and products have their own income, credit, asset and property requirements; a modeled price is not approval or spending advice.
How does the PMI choice affect the result?
Choose an explicit annual percentage of the initial loan, a quoted monthly premium or a confirmed no-PMI exemption assumption. The model applies the selected premium only above 80% loan-to-price (LTV). At or below 80%, modeled PMI is zero; this does not cancel an existing policy or certify eligibility. There is no hidden standard premium. Confirm the quote for the modeled loan amount.
Can the model handle an all-cash purchase?
Yes. Available purchase funds can cover the full modeled price, with no loan P&I or PMI, while tax, insurance and HOA still count toward the monthly budget. Equality with the budget is allowed. If the price is below available funds, only the price is used. Entered zeros are explicit hypothetical assumptions, not claims that Florida taxes or insurance are universally zero.
Is the property-tax percentage an actual Florida tax calculation?
No. It is an entered effective annual allowance on the modeled purchase price, converted to a monthly amount. It is not millage, a tax on assessed value or a Save Our Homes forecast. The seller's tax bill does not establish your future amount. Obtain property-specific guidance on taxes after purchase; the calculator does not determine exemptions or assessed values.
What costs are outside the monthly estimate?
The included cost stack is loan P&I, the tax allowance, monthly insurance, regular HOA/condo dues and modeled PMI. Use property-specific quotes, not universal Florida averages. Closing costs, reserves, utilities, maintenance and special assessments are outside the estimate. Available purchase funds must already exclude money reserved for closing and reserves. A 1–50-year term is a calculation range, not proof a lender offers that term.
Why might the result show a zero price or a calculation ceiling?
A zero price means no positive price fits the entered monthly model, not that you cannot buy; entered insurance and HOA remain visible. Budgets are rounded down to cents and monthly components are rounded separately before summing; feasible prices are selected conservatively in cents. The supported price ceiling is $2,000,000,000, not a certified affordability maximum. Review the assumptions and obtain lender and property quotes.