Work backward from your income, monthly debts, and down payment to the price a lender will likely support — then see the full monthly payment behind it, taxes and insurance included.
Free, no signup needed. Create a free account only if you want to save it, export the PDF, or share it.A lender approves you on debt-to-income ratio: your total monthly obligations, including the new housing payment, divided by your gross monthly income. Most conventional programs stretch to roughly 43-50% DTI, and that ceiling is often well above what actually feels comfortable once you are living in the house.
This calculator shows both sides. Enter your income, existing debts, down payment, and a target DTI, and it returns the price that supports — along with the maximum monthly payment, the supported loan amount, and a full principal, interest, taxes, insurance, and PMI breakdown so nothing surprises you at closing.
Backed into from your DTI target, not a rule of thumb. Change the DTI and watch the price move so you can find your own comfort line.
Principal, interest, taxes, insurance, and PMI where it applies. The payment that actually leaves your account each month, not just principal and interest.
See how another $5,000 down changes both the price you can reach and whether PMI applies at all.
One click into the house hack tab and you can see how renting part of the property changes both the payment and, often, what you qualify for.
Before taxes, and include documented, stable income only — base pay, plus bonus or commission if you have a two-year history of it.
Car payments, student loans, minimum credit card payments, personal loans. Do not include utilities, groceries, or your current rent.
Use a real current rate, not the promotional number in an ad. Under 20% down, PMI is added automatically.
43% is a common conventional ceiling. Slide it down to 36% or 30% to see what a genuinely comfortable payment buys — that gap is where most buyer regret lives.
I will email a plain breakdown of what Iowa buyers actually pay at the closing table, what the first-time buyer programs cover, and an introduction to a lender who closes on time if you want one.
As a starting point, most lenders will support a total debt-to-income ratio in the 43-50% range, including the new housing payment. On $7,000 a month of gross income with $450 of existing debts, that is roughly a $2,500 to $2,900 monthly payment. Whether that is comfortable depends on your savings rate, job stability, and what else you want your money to do — run the calculator at a lower DTI to see that version.
Principal and interest on the loan, property taxes, homeowner's insurance, PMI if you put less than 20% down, and HOA dues where they apply. Lenders refer to the first four as PITI, and it is the number your escrow account is built around.
No. FHA allows 3.5% down, conventional programs start around 3-5% for qualified buyers, and USDA offers zero-down financing in many of the smaller communities around the Ankeny-to-Ames corridor. Under 20% down you will carry PMI, which typically falls off as you approach 20% equity.
Substantially, in two directions. Lenders will often count a portion of the rent from the other units toward your qualifying income, raising the price you are approved for, and the rent then covers part of the payment you actually make. Open the house hack tab in the calculator to model it.
Yes, and early. A pre-approval turns an estimate into a real number based on your actual credit and documented income, and in a competitive situation your offer is not taken seriously without one. It costs nothing and does not obligate you to that lender.
Buyer closing costs commonly land in the 2-3% range of the purchase price, covering lender fees, title work, appraisal, and prepaid taxes and insurance. On a $300,000 purchase that is roughly $6,000 to $9,000 on top of your down payment — budget for it separately.