How to Use This Estimate
Compare monthly budget and available cash. This is a planning estimate, not a lender qualification.
What Your Buying-Power Estimate Means
The starting estimate uses 36% of your income before taxes for the new home’s payment plus other debt payments. It subtracts your other monthly debts to find a housing budget. You can change this assumption under “Advanced: how we set your monthly budget.” It estimates a price using interest, taxes, insurance, mortgage insurance, HOA dues and cash available. Actual underwriting can use different debt ratios and qualifying income. Your comfortable budget may be lower.
- For example, $6,000 in monthly income × 36% = $2,160. Subtract $400 in other monthly debts to get a $1,760 housing budget. The percentage is a planning setting, not a promise of loan approval.
- Reserve cash for closing, moving and emergencies.
- Use actual tax and insurance estimates when a property is known.
Your Payment and Cash Both Matter
You can be limited by monthly payment or by available cash. A price can look affordable monthly but still require more down payment and closing cash than you have. The tool assumes a 3% minimum down payment solely as a planning floor; that is not a promise of a loan program.
- Run the cash-to-close calculator at the resulting price.
- Ask Adam to review the programs and payment options for your situation.
Income, Debts & Buying Power
These examples use the calculator’s 36% planning assumption. The housing amount includes principal and interest, property taxes, insurance, mortgage insurance and HOA dues.
| Annual income before taxes | Other monthly debts | Illustrative housing budget |
|---|---|---|
| $60,000 | $300 | $1,500/month |
| $85,000 | $450 | $2,100/month |
| $110,000 | $600 | $2,700/month |
Next, use the mortgage payment calculator to compare a price and loan program, then estimate your cash to close.
Questions Buyers Ask
Does this check my credit?
No. Nothing is submitted to a credit bureau. The result is based only on your inputs.
Can I spend the full number shown?
Treat it as a ceiling for discussion. Choose a payment that leaves room for savings, maintenance and unexpected expenses.