What home price can I afford?

Find out what’s affordable for you and see what we could prequalify you for – an important first step when you’re ready to shop for a home.

Explore home prices and monthly payments.
Understand why what you can afford may differ from your prequalified amount.
Know your next best steps based on the numbers.

Understanding Home Affordability

There’s more to it than a home price and mortgage payment.

Affordability Vs. Prequalification

Our calculator estimates what you can afford and what you could get prequalified for. Why? Affordability tells you how ready your budget is to be a homeowner. What you could get prequalified for helps you understand how ready you are to start shopping for a home.

A Home Price You Can Live With

For the home price you select, you’ll see your remaining budget. Of course it should cover basic necessities. It should also fit your life. Does it leave enough left over for savings goals, unexpected expenses (so you can avoid debt) and the things you like to do?

Uncovering Costs

Calculator results include costs you might not have thought of. For example, closing costs can be 2 – 5% of a home’s price. Taxes and insurance also add to your mortgage payment. Understanding these numbers helps give you a more realistic idea of what’s affordable.

Frequently Asked Questions

You can also get help from a Home Loan Expert.

(888) 452-8179

What’s the difference between what I can afford and what I can prequalify for?

The estimated home price you can afford helps you understand how ready your budget is to buy a home.

Your prequalification estimate helps you understand how ready you are to get prequalified for a mortgage and start shopping. Real estate agents and sellers prefer to know you’re prequalified before you go to open houses and make offers.

These two numbers don’t need to match and often won’t. But when they’re reasonably close and realistic, you could be ready to get prequalified and start shopping for a home.

How can I increase how much home I can afford?

Here are two common ways to increase how much home you can afford.

Reduce your monthly debt. Paying off credit cards or other loans will improve your debt-to-income ratio. That increases how much home you can afford.

Increase your cash to buy. The more you have for a down payment and closing costs, the more home you can afford. Check out our home loans that make buying a home more affordable.

Use the calculator to explore how changing these numbers increases the estimated home price you can afford. The Rocket Money^SM app can also help increase the amount of home you can afford by empowering you to work on your credit, spending and savings.

What costs do I need to consider when buying a home?

Upfront costs. Buying a home requires services like the appraisal, credit report, home inspection, title search and the processing of your loan. The costs for all these services are typically paid at closing, and they can range from 2 – 5% of the purchase price. At 3% for a $200,000 house, that’s $6,000.

Costs after you own the home. Paying property taxes and homeowners insurance are part of owning a home. Some types of mortgages require mortgage insurance. For most people, a portion of these costs are added to your monthly mortgage payment.

When using the calculator and looking at an estimated home price you can afford, check out the Monthly Payment and Cash To Buy sections. They’ll help you better understand the costs you need to consider.

How do I know when I’m ready to apply for a mortgage?

Our home affordability calculator was designed to help you answer this question, so you’re in the right place. When the estimated home price you can afford and your prequalification estimate are realistic, reasonably close, and you want to move within the next 6 months, it could be time to apply.

If your time frame for buying a home is farther out, the Rocket Money^SM app can help you get ready by working on your credit, spending and savings.

How can I increase my prequalification estimate?

If your prequalification estimate comes in low, more cash to buy usually helps. You don’t need a 20% down payment to buy a home. But most buyers need at least 3% of the home's purchase price for a down payment, and another 2% to 5% for closing costs.

Try increasing your cash to buy in the calculator and see what happens. If the estimated home price you can afford seems good and it’s just cash to buy holding you back, call or chat with a Home Loan Expert. We have loan options that make buying a home more affordable.

How does debt impact my home affordability?

The less debt you have, typically the more home you can afford. That’s because you have more income that can go toward your mortgage payment. In this case, debt is monthly payments for things like credit cards, student loans and car payments.