Affordability ceiling, DTI ratios, the full PITI breakdown, year-1 cash needs, PMI removal timeline, rent-vs-buy comparison, and tax benefit. Fill in your numbers; the report builds itself. Print or save as PDF before the offer goes in.
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Lenders look at two ratios: front-end (housing only) and back-end (housing plus all other debt). Conventional loans target 28% / 36%; many push to 43%; FHA can go to 50% with compensating factors.
Principal & Interest, plus monthly escrowed taxes and insurance, plus PMI if applicable, plus HOA. The number that actually leaves your account each month.
Down payment is the big number — but closing costs and recommended reserves usually equal another 5-7% of the purchase price.
If your down payment is below 20%, you'll pay private mortgage insurance until your loan-to-value ratio drops below 80% — through amortization, additional principal payments, or appreciation.
Mortgage interest and SALT (state and local taxes, capped at $10K) are deductible if you itemize. The 2017 standard-deduction increase made itemizing rare for non-coastal buyers — we calculate both and show which actually wins.
The total cost of buying (PITI + maintenance + opportunity cost on down payment − tax benefit − equity built − appreciation) compared to total rent paid over the same period. Honest comparison; no thumb on the scale.
The math points the discussion in a direction. Your licensed lender, attorney, and CPA convert it into an action plan. Bring this report to that meeting.
⌂ Equal Housing Opportunity. The Baratelli Institute supports the principles of the Federal Fair Housing Law and the Equal Credit Opportunity Act. Lenders, mortgage brokers, and real estate professionals advertising or referencing this report are required to comply with the Fair Housing Act, ECOA, and applicable state real estate advertising regulations.
Educational tool — not advice. This is a decision-support tool. It is not an offer to lend, an interest-rate quote, or legal/tax advice. Actual loan eligibility, rate, and terms are set by your lender at lock based on full underwriting. Tax outcomes depend on your full return — confirm with a CPA. Property tax, insurance, HOA, and maintenance assumptions vary by property; confirm with your insurance agent and HOA.