Free tool
Buying Power
You could buy up to
$560,000
≈ $3,845/mo · comfortable near $418,000
Loan term
Applies to me
Toggle if a first-time-buyer program or VA loan applies.
Assumptions
The full breakdown
Estimated payment · $3,845/mo
Payoff — 30 vs 15 year
- · · 15-year · $4,425/mo · paid off Sep 2041 · $296,419 interest
- — 30-year · $3,243/mo · paid off Sep 2056 · $667,477 interest
Over 30 years you repay $1,167,477 — $500,000 principal + $667,477 interest.
Estimate only — not a pre-approval or an offer to lend, and not tax advice. Real numbers come from a licensed lender. JOW Realty does not originate loans. Questions →
How much home can I afford?
This calculator estimates the home price you could finance based on the same math a lender uses: your debt-to-income ratio. It takes your gross income, subtracts your existing monthly debt payments, and works out how large a mortgage payment fits inside a lender's limit — then converts that payment back into a purchase price at today's rates.
The monthly payment it solves for is the full PITI figure: principal and interest, property taxes, homeowner's insurance, mortgage insurance (PMI) when you put down less than 20% on a conventional loan, and HOA dues. Lowering any assumption — rate, tax rate, insurance — raises the price you can carry.
What affects how much home you can afford
- Debt-to-income ratio
- Lenders cap your total monthly debt (housing plus everything else) at roughly 43–50% of gross income. Paying down a car or card raises your budget more than almost anything else.
- Down payment
- A larger down payment means a smaller loan and, past 20% on a conventional loan, no monthly PMI.
- Interest rate
- Rate is set by your credit, loan type, and the market on the day you lock. A one-point move changes buying power by tens of thousands of dollars.
- Loan type
- Conventional, FHA, and VA loans have different down-payment minimums, mortgage-insurance rules, and rates. VA loans allow $0 down with no monthly mortgage insurance.
- Property taxes and insurance
- These are part of your monthly payment. Maricopa County's effective rate runs a little above 0.5% of value; insurance varies by home.
Frequently asked questions
How much income do I need to afford a $500,000 home in Arizona?
As a rough guide, financing a $500,000 home with roughly 10% down at a ~6.75% 30-year rate needs about $120,000–$140,000 in gross household income and minimal other debt, assuming a 43% debt-to-income limit. Higher debts, a higher rate, or higher taxes push that number up. Use the calculator with your own figures for a closer estimate.
What debt-to-income ratio do mortgage lenders require?
Most conventional lenders want your total monthly debt — the new house payment plus car loans, student loans, and minimum credit-card payments — at or below about 43% of gross monthly income, and will sometimes stretch to 50% on strong files. A separate 'front-end' guideline keeps the housing payment alone near 28–31%.
How much should I put down on a house?
Conventional loans allow as little as 3% down, FHA 3.5%, and VA and USDA 0% for those who qualify. Putting 20% down on a conventional loan removes monthly private mortgage insurance (PMI). More down means a smaller loan and lower payment, but it also ties up cash you may want for reserves or improvements.
Is this the same as a mortgage pre-approval?
No. This is an educational estimate. A pre-approval comes from a licensed lender after they review your credit, income documentation, and assets, and it's what sellers actually want to see with an offer. JOW Realty does not originate loans.
What's included in the monthly payment estimate?
Principal and interest on the loan, property taxes, homeowner's insurance, private mortgage insurance when a conventional loan is under 20% down, and any HOA dues you enter. It does not include utilities, maintenance, or one-time closing costs, which are shown separately.
Do first-time buyers get a lower rate?
Sometimes. First-time buyers can often access down-payment assistance and reduced-rate programs — in Arizona, the state's Home Plus program is a common one. The calculator lets you model a modest rate reduction; the exact benefit depends on the program and your income.