Question 1

How much house can I afford with my salary?

Accepted Answer

A common guideline is the 28/36 rule: housing expenses (PITI plus HOA) should stay under 28% of gross monthly income, and total debt payments should stay under 36%. With a $75,000 annual income and typical U.S. assumptions (30-year fixed at 7%, 20% down, 1.2% property tax, $1,800/yr insurance), the calculator would estimate a comfortable home price near $360,000–$420,000. Your specific number depends on credit, debts, down payment and local property taxes — adjust the inputs to model your scenario.

Question 2

What is the difference between gross and net monthly income for affordability?

Accepted Answer

Gross monthly income is what you earn before taxes and deductions; net is what lands in your bank account. Lenders qualify you on gross income because they want a stable measure of ability to pay. To check affordability on your net pay (take-home), divide your annual net by 12 and apply a stricter 25/33 rule — your budget feels tighter on net income because of taxes, health insurance and retirement contributions.

Question 3

Does this include property taxes and HOA fees?

Accepted Answer

Yes — the calculator includes property taxes (set as a percentage of the home's value, typically 0.8% to 2.5% depending on state/county), homeowners insurance (default $1,800/yr), and HOA fees if you enter them. These are part of the true monthly housing cost and are required for accurate qualification. Lenders also count property taxes and insurance when they pre-approve you, so omitting them gives an unrealistically high number.

Question 4

What is a good mortgage readiness score?

Accepted Answer

The score combines your DTI ratio, down payment percentage, credit score, and emergency-fund coverage. 80+ is excellent — most lenders will qualify you with a competitive rate. 60–80 is fair — you may qualify but with a higher rate or PMI. Below 60 means you likely need to lower debts, save a larger down payment, or improve credit before applying. The score is a heuristic — actual lender decisions depend on full underwriting.

💵 Your finances

🏠 Loan & property

🏡 You can afford

📋 Monthly payment breakdown

💡 Affordability insights