How this number is made
Start from the principal-and-interest piece you are willing to pay. Tax and insurance are not in that piece, so the price here is higher than the house you can actually carry if you ignore them.
- Take your housing budget and subtract monthly tax, insurance, and HOA first.
- Put only what is left into the payment.
Formula
Loan = payment × ((1+r)^n − 1) ÷ (r(1+r)^n). Price = loan ÷ (1 − down percent).
Worked example
With the figures already in the form, price that payment supports is $386,738.
Questions
Why is this higher than the house-afford page?
That page starts from income and lender ratios. This page starts from a payment you typed and does not know your other debts.
What rate should I use?
A rate you could actually lock, not last decade’s rate. The price moves a lot when the rate moves.