Afford My Place
Payment-First Loan Sizer

How Much Mortgage Can I Afford?

Reverse-engineer your purchasing budget based on the monthly payment you are comfortable with. Establish a secure mortgage borrowing limit before you shop.

1. Monthly Payment & Financing

PITI payment you are comfortable with
$
$500$8,000+
$
$0$200,000+
%
3.0%10.0%
Maximum Loan Principal
$352,000

Based on your comfortable monthly payment of $3,000, this is the mortgage size supported.

Supported Home Price$402,000
Estimated Loan Term30 Years

Estimated Monthly Costs Breakdown

Principal & Interest$2,225
Property Taxes (Est. 1.2%)$402
Home Insurance (Est. 0.5%)$167
Private Mortgage Insurance (PMI)$147
Total Monthly PITI Payment$3,000/mo

Why Start with the Monthly Payment?

The benefits of planning home purchasing around actual cash flows instead of bank limits.

Reverse-Engineering Path

We back out estimated non-mortgage overheads first, then find the principal that matches your target monthly payment.

1. Monthly Cash Budget
− Property Taxes (1.2% / 12)
− Homeowners Insurance (0.5% / 12)
− PMI (under 20% down)
→ Net Principal & Interest
→ Supported Loan Principal
Avoiding Over-extension

Traditional approvals evaluate gross DTI ceilings, which can qualify you for a monthly payment that leaves little financial headroom. Planning around your target payment guarantees you stay in your comfort zone.

Borrowing Power Limit

By isolating the mortgage loan principal from your total purchasing budget, you establish exact parameters for shopping loans. This gives you greater negotiating leverage when comparing rates.

Frequently Asked Questions

How do interest rates change the mortgage amount I can afford?

Interest rates dictate your borrowing costs. A higher rate means more of your monthly payment goes toward interest rather than principal, reducing your total loan capacity. For example, raising the interest rate from 6% to 7% on a $3,000 target payment reduces your borrowing power by about $25,000.