Buyer tool
How much house can I afford?
Tell us your income, monthly debts, and down payment. We'll back into the largest home price that keeps you under your target debt-to-income ratio (default 43%, the standard QM threshold).
Estimate only. Real lender approval considers credit score, employment history, asset reserves, and loan program rules. This tool models PMI at 0.6%/yr when your down payment is under 20%; if you have excellent credit your real PMI may be lower. Once you have a target price, plug it into the mortgage calculator to see the full monthly payment.
How affordability is solved
Lenders use your debt-to-income ratio (DTI) — total monthly debt obligations divided by gross monthly income. The most common QM cap is 43%, with some products allowing up to 50%.
- We compute your max monthly housing payment:
(income/12 × DTI%) − existing debts. - Subtract HOA, monthly property tax, and monthly insurance to find the max principal & interest.
- Reverse-solve the amortization formula for the largest loan principal that produces that P&I.
- Add your down payment to get the maximum home price.
Max vs. comfortable
The "max" is what a lender will let you borrow. The "comfortable" number is roughly 80% of that — the price most buyers are happiest at long-term, leaving room for retirement contributions, emergencies, and life. Stretching to the max can work, but bake in a buffer.
Three Seattle-specific tips
- Effective tax rates differ. Seattle's effective rate is roughly 0.99%; Bellevue, Kirkland, and Mercer Island sit closer to 0.75–0.90%.
- Conforming loan limit in King/Snohomish/Pierce is $1,063,750 for 2026. Above that you're in jumbo territory (rates ~30 bps higher and stricter DTI).
- Self-employed income is averaged differently. Two years of tax returns matter more than your last six paychecks.