Closing costs · View breakdown
HOW QUALIFICATION WORKS
Closing costs
Cost of the transaction itself. Paid in addition to the down payment.
Effect & details
Cash required includes the down payment, closing costs, and prepaid items. Eligible seller or lender credits may offset some costs.
Down payment
The cash you put toward the purchase price.
Effect & details
Put down as much as you can afford without hurting your quality of life. A key goal is to reduce or avoid mortgage insurance, which usually goes away at 20% down on conventional loans. You can change this figure here or in the calculator above; both use the most recent entry.
Monthly debts
Monthly payments on debt you already owe.
Effect & details
Higher debt payments use more of the income available for a new housing payment.
Credit score
Your history of managing credit and repaying debt.
Effect & details
Scores vary by scoring model and loan product. An app score may differ from a mortgage score.
Monthly income
Stable, documentable income before taxes.
Effect & details
Income entered here is a planning estimate. A lender must review which income can be used.
Income benchmark
2 × housing + other debt payments.
Additional scenario details
These two fields are displayed in your snapshot; they do not affect the draft comparison yet.
KEY CONCEPTS THOSE INPUTS PRODUCE
DTI
Debt-to-income ratio
What does this mean?
Housing plus other monthly debt payments, divided by income before taxes.
Conventional · Draft requirements
Draft thresholds only: not verified loan-program rules.
Programs matching this draft baseline
Add income and credit score.
FHA, VA, and other program rules will be added when supplied. No eligibility decision is made here.
WHAT TO DO WITH THOSE
Keep in mind
Maximum ≠ optimal.
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A payment that fits a ratio may still leave too little for your everyday budget. Include savings, repairs, and other spending in your plan.
What counts as debt?
See examples
Start with auto and student loans, credit card minimums, personal loans, and other property payments. Do not count this home twice. Utilities, food, insurance, and subscriptions still matter for your budget, even when not entered as debt payments here.
How do I know my score?
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You have different scores under different models. A mortgage review can clarify the scores used for your loan.
The 2:1 rule
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This mockup uses income equal to twice housing plus other debt payments: a 50% DTI illustration. It is not a universal requirement, approval rule, or spending target.
THE CAPACITY EQUATION
Planning estimates only. Starting rate is an example, not a current quote. Original calculator assumptions and help text are unchanged. Draft comparison thresholds and mortgage insurance estimates are placeholders. Add verified licensing disclosures before publishing. Income ratio and credit score definitions: CFPB.