This calculator estimates your buying power using your annual income, monthly debts, down payment, and where you're buying. It applies the lending industry's 28/36 rule and factors in your mortgage's principal, interest, property taxes, homeowners insurance, and — when your down payment is under 20% — private mortgage insurance.

Use the Advanced options to fine-tune your interest rate, loan term, tax rate, insurance, and HOA fees for a more precise picture. The more accurate your inputs, the closer this estimate will be to what a lender actually offers.

Lenders generally don't want you spending more than 28% of your gross monthly income on housing costs, or more than 36% of it on all debts combined (housing plus car loans, student loans, credit cards, and so on).

Staying inside those guardrails helps ensure you have enough left for everyday life, savings, and the unexpected. For example, on a $6,000 monthly income you'd aim to keep housing near $1,680 and total debt near $2,160.

A 20% down payment is the classic benchmark and lets you skip private mortgage insurance — but many loans need far less. FHA loans can go as low as 3.5%, and VA and USDA loans may require nothing down.

A larger down payment reduces your loan balance, which lowers your monthly payment and raises the price range you qualify for. Here's how down payment size affects the monthly payment on a $400,000 home at 6.5% over 30 years:

Fixed-rate: The interest rate never changes, so your principal & interest payment stays the same for the life of the loan. Predictable and popular.

Adjustable-rate (ARM): Starts with a lower fixed rate for a set period (e.g., 5 years), then adjusts periodically. Lower upfront cost, but future payments can rise.

FHA: Backed by the Federal Housing Administration, allowing down payments as low as 3.5%. Typically requires mortgage insurance.

USDA: For qualifying buyers in eligible rural areas — often $0 down, with a required guarantee fee.

VA: For veterans and active military — $0 down and no PMI. One of the strongest loan options available.

Your interest rate has an outsized effect on both your monthly payment and total cost. Even half a percentage point can mean tens of thousands of dollars over 30 years.

The higher your credit score, the lower the rate you'll typically qualify for. Building credit or saving for a larger down payment before you buy can meaningfully increase what you can afford.

Interest rate vs. APR: The interest rate is the cost of borrowing the principal. APR is a broader figure that also folds in lender fees and certain costs, giving you a fuller way to compare loan offers.

Property tax is a percentage of your home's assessed value and varies widely by municipality. It's usually collected as part of your monthly mortgage payment and held in escrow.

Because rates differ from town to town, taxes are an important part of affordability in Bucks County and the surrounding area. Heather can walk you through the real tax picture for any specific home or neighborhood you're considering.

Homeowners insurance protects your property against damage, theft, and liability. Lenders require it, and the premium is typically bundled into your monthly payment.

Private mortgage insurance (PMI) is required on most conventional loans when your down payment is under 20%. It protects the lender, not you, and usually costs a fraction of a percent of the loan amount each year. Once you build enough equity, PMI can typically be removed — one more reason a larger down payment can pay off.

Getting pre-approved makes you a stronger buyer. Gather these ahead of time:

• Recent bank and investment account statements
• Pay stubs and W-2 forms (or profit & loss statements if self-employed)
• A list of monthly debts and expenses
• Records of assets — retirement accounts, stocks, other property
• Your credit score
• Gift letters, if any down-payment funds are gifted

Not sure where to start? That's exactly what Heather is here for — reach out and she'll connect you with trusted local lenders.