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How can I tell whether I can afford a home and a mortgage?

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Short answer

Affordability depends on your budget, not only on how much a lender says you qualify to borrow. Budget for the mortgage payment and for other housing costs such as taxes, insurance, possible mortgage insurance, association dues, repairs, and savings. Fannie Mae also lists , current debt, income, and available interest rates as factors.

Full explanation

The CFPB draws a line between the amount a lender is willing to loan and the amount you can repay without stretching other priorities. Online calculators often use standard ratios, but lenders do not account for all family and financial circumstances.
Look at income, expenses, and savings to see what fits. The amount sent to the mortgage company is often principal and interest, and it may also include escrowed property taxes, homeowners insurance, and sometimes mortgage insurance. Association or condo dues are generally paid separately and still belong in the monthly housing budget, unless a particular arrangement collects them through escrow. Repairs and maintenance are additional. The payment can also change later depending on the loan type, so consider a higher future cost. Estimates can come from an insurance agent, tax assessor, association, and lender.
The CFPB also cautions against cutting savings to buy a larger house. You will still need reserves for emergencies, retirement, and other goals. Some home-related costs can rise over time, including insurance in higher-risk areas. Fannie Mae lists the cash you put down, the debts you already carry, your income, and the rates on offer as affordability factors. The frozen sources do not set a single affordability percentage as a rule.

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Educational summary of public sources. Not personalized advice. The original official source controls where applicable.

Last reviewed

September 9, 2026

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