Your Money. Your Move.
The step-by-step affordability playbook that turns "can I?" into "I can." Budget it, own it, live it.
Your Monthly Budget
Understand your current income and obligations
Before we talk mortgages, let's talk about what you're already spending. A clear picture of your budget is the foundation of smart homebuying.
When lenders evaluate your application, they'll want to see your income balanced against your existing obligations. The more you understand your own numbers, the stronger your position in the process.
Be honest about your numbers. This tool is just for you — it helps you make better decisions about your home purchase.
Understanding Your DTI
Debt-to-Income Ratio and Your Buying Power
Debt-to-Income (DTI) ratio is the percentage of your gross monthly income that goes toward debt payments. Lenders use this to determine how much mortgage debt you can safely carry.
Back-End DTI: All your monthly debts (including the new mortgage payment) divided by your gross monthly income.
Most mortgage programs have a maximum DTI of 45%, but the ideal sweet spot is below 38%. At 38%, you're in great shape. At 45%, you're at the maximum lenders will typically allow.
Example: If you earn $5,000/month and have $500 in debts, your current DTI is 10%. If housing adds $1,500, your total DTI would be 40% — still acceptable, but getting close to the limit.
Your Maximum Purchase Price
Calculate what home price your budget supports
Your housing payment isn't just principal and interest. It includes property taxes, homeowners insurance, and possibly PMI or HOA fees. We calculate backward from your comfortable monthly payment to find your maximum home price.
Your Monthly Payment Breakdown
See exactly where your money goes each month
A mortgage payment has multiple components: principal (paying down the loan), interest (cost of borrowing), property taxes, homeowners insurance, and possibly mortgage insurance. Understanding each piece helps you make informed decisions.
Ready to Run Your Numbers?
Use our mortgage calculator to see what you can afford, or get pre-qualified to see your real options.
You've seen the full budgeting playbook — from comfort payment to DTI to buying power.
Next up: Income. Credit. Assets.
Keep the momentum. Step 2 · Three Pillars picks up exactly where this page leaves off — still free, still no credit pull, still no sales call.