Mortgage affordability calculator

The ceiling answers one question: the largest price at which the full housing payment stays inside the front-end ratio and the payment plus your other debts stays inside the back-end ratio. It is a screening number, not a pre-approval. Lenders score credit history, employment, and reserve months differently, and many price above or below these benchmark ratios. Closing costs are added to the cash you need at closing, not financed into the loan. Taxes, insurance, and PMI are treated as level amounts for the whole term.