How much house can I afford in the Twin Cities?
Enter your income, monthly debts, and down payment to see the highest home price that fits standard lending ratios, including property taxes and insurance.
Rates as of : 30-Year Fixed Conforming national average 7.15%. Source: Optimal Blue via FRED.
Maximum Affordability
Estimated Monthly Payment
$2,833This calculator uses industry-standard Debt-to-Income (DTI) rules. Your maximum payment is capped so your housing costs don't exceed 45% of your gross income, and total debts don't exceed 50%.
- Max Front-End (45% Rule): $3,000/mo
- Max Back-End (50% Rule): $2,833/mo
How this calculator works
The calculator keeps your estimated housing payment at or below 45% of your gross monthly income, and your total monthly debts, including housing, at or below 50%. Whichever limit is lower sets your maximum monthly housing payment.
It then works backward from that payment to a home price, using your down payment, the interest rate and loan term you choose, property taxes estimated at 1.1% of the price per year, and insurance estimated at $150 a month.
The result is a ceiling, not a recommendation. Lenders set their own limits by loan program and credit, so talk with a lender before you shop at the top of your range.
Questions about the Affordability Calculator
How does this calculator decide what I can afford?
It keeps your estimated housing payment at or below 45% of your gross monthly income and all monthly debts, including housing, at or below 50%. It then works backward to the highest price that fits, including property taxes at 1.1% a year and insurance at $150 a month.
Is this the same as a pre-approval?
No. It is an estimate. A lender reviews your credit, income, assets, and loan program to tell you what you actually qualify for. Learn about getting a mortgage.
Should I spend the maximum amount?
Not always. The result is a ceiling based on lending ratios. Many buyers choose a lower price to leave room for savings, repairs, and other goals. Try a lower price in the mortgage payment calculator to find a monthly payment you're comfortable with.
Can down payment assistance change what I can afford?
It can. A larger down payment raises the price this calculator shows, and Minnesota has state, county, and city programs that help with a down payment or closing costs. See Minnesota programs.
Ready to get pre-approved?
Our lending partners will turn your estimate into a real number for your situation.