{"slug":"home-affordability","name":"Home Affordability Calculator","category":"borrow","tags":["home","planning"],"aliases":[],"region":null,"tagline":"How much house you can afford — on the rule your lender actually uses, which differs between the US and the UK.","endpoint":"https://xearno.tools/api/v1/tools/home-affordability","page":"https://xearno.tools/t/home-affordability","description":"Two countries give entirely different answers on the same income. US lenders underwrite on debt-to-income ratios — 28% of gross income on housing, 36% on all debt — which cap the monthly payment and let the loan fall out of it. UK and Australian lenders cap the loan itself at a multiple of income, around 4.5x, then stress-test the payment at a rate above the one you are quoted. This applies whichever rule is yours, and names the binding limit.","inputSchema":{"type":"object","properties":{"method":{"description":"How does your lender decide? US lenders underwrite on two debt-to-income ratios. UK and Australian lenders cap the loan at a multiple of income (about 4.5×) and then stress-test the payment. The two produce materially different answers on the same income.","type":"string","enum":["US","LTI","DTI50"],"default":"US"},"income":{"description":"Gross annual income","type":"number","minimum":1,"default":110000},"monthlyDebts":{"description":"Existing monthly debt payments Car loans, student loans, card minimums — not rent or utilities.","type":"number","minimum":0,"default":500},"down":{"description":"Down payment saved","type":"number","minimum":0,"default":60000},"rate":{"description":"Mortgage rate (%)","type":"number","minimum":0,"maximum":30,"default":6.5},"years":{"description":"Term (yr)","type":"number","minimum":5,"maximum":50,"default":30}},"required":[],"additionalProperties":false},"methodology":["The 28/36 rule: housing costs ≤ 28% of gross monthly income, and housing + all debt payments ≤ 36%. The lower of the two limits is your housing budget; ~75% of it services P&I (the rest covers taxes/insurance), which converts to a maximum loan via the amortization formula, plus your down payment.","Lenders stretch to 43-50% DTI on some programs — that this calculator refuses to is deliberate."],"usage":"POST https://xearno.tools/api/v1/tools/home-affordability with a JSON body matching inputSchema."}