How Much Home Can I Realistically Afford?

Understanding Affordability

Most buyers get stuck between “the payment I want” and “the payment I qualify for.” Your true comfort zone usually lands somewhere between the two.

The Simple Affordability Formula

Aim to keep your total monthly housing cost — mortgage, taxes, insurance, and HOA — at or below 30–33 percent of your gross monthly income.

Factors That Affect Affordability

• Down payment: More down equals a lower monthly payment.

• Interest rate: Even a 0.25 percent change matters.

• Existing debts: Student loans, car loans, and credit cards all impact what you qualify for.

• Location: Property taxes vary widely, especially in Texas.

Why Lenders May Approve More Than You Want

Lenders look at ratios, not personal lifestyle. They don’t know your travel habits, childcare costs, or savings goals — only you do.

The right payment is one that lets you sleep comfortably and still enjoy your life.