How we estimate what you can afford
Lenders mostly look at your debt-to-income ratio. The common 28/36 rule says your total housing payment (mortgage, property tax, insurance, PMI, and HOA) should stay under 28% of your gross monthly income, and that housing plus all your other debt payments should stay under 36%. This calculator finds the most expensive home that keeps you under both limits.
PMI (private mortgage insurance) applies when your down payment is less than 20% of the price. Putting 20% down removes it, which can raise the price you can afford. These are estimates: actual approval also depends on your credit, savings, and the lender.