7-Day Plan — Day 1 of 7
Know your real buying number
What can I realistically buy? Start here, before you look at a single listing.
Direct answer
Your real buying number isn't what a lender might approve you for — it's the highest monthly housing payment you can afford and still cover debt, taxes, insurance, HOA, and an emergency fund without stress. Run your income and existing debt through a real calculator before you look at a single listing.
Already have a specific home price in mind? Try the payment calculator instead.
Why this matters
Approved-for and comfortable-with are different numbers
A lender's maximum is based on a debt-to-income (DTI) ratio ceiling — typically up to around 43-50% of gross monthly income going to debt, depending on the loan program. That's a regulatory limit, not a recommendation for how you should actually live.
This site's calculators use a stricter, more conservative 40% back-end DTI ceiling by default — existing debt plus your new housing payment — and you can tighten that further based on your own comfort level. The gap between "a lender would approve this" and "I'd be comfortable paying this every month for 30 years" is exactly the gap Day 1 is about closing.
Evidence
What actually goes into your number
- Household income
- Gross annual, before taxes
- Monthly debt
- Car loans, student loans, credit cards, etc.
- Down payment
- Cash you have saved now
- Interest rate & term
- Drives your monthly principal & interest
- Property tax & insurance
- Often 1.25%+/yr and $2,000+/yr in the Bay Area
- PMI
- Applies automatically if your down payment is under 20%
- HOA
- Common for condos/townhomes — easy to forget
- Reserves
- Cash held back after closing, not spent on the purchase
Step by step
How to find your number today
- 1
Add up your real monthly debt
Every recurring payment — not just what shows on a credit report. Car, student loans, credit cards, anything with a fixed monthly bill.
- 2
Enter your numbers into the buying power calculator
Income, debt, down payment, and interest rate. It solves for a realistic price range using the same 40% DTI ceiling described above, plus PMI, property tax, insurance and HOA — not just principal and interest.
- 3
Read the full monthly payment breakdown, not just the price
The calculator shows principal, interest, tax, insurance, PMI and HOA separately, so you can see exactly what's driving your number.
- 4
Decide if the comfortable number should be lower
If the max the calculator shows still feels tight against your other goals, that's useful information — re-run it with a smaller target monthly payment.
Example
What this looks like with real numbers
Example
$190,000 household income, $800/mo existing debt, $120,000 down payment, 6.5% rate
Monthly housing budget at a 40% DTI ceiling: about $5,533/mo.
That solves for an estimated price range of roughly $615,000–$725,000.
Because the down payment is under 20% of that price, PMI applies — about $252/mo, folded into the total. Property tax and insurance add roughly $955/mo combined. The full breakdown (not just principal and interest) is what makes this number realistic instead of optimistic.
Checklist
Before you move to Day 2
- Ran your own numbers through the buying power calculator
- Reviewed the full monthly payment breakdown, not just the top-line price
- Decided on a comfortable monthly number, which may be lower than the calculator's max
- Noted whether PMI applies to your scenario, and what it adds
Methodology
How this number is actually calculated
Methodology
The calculator solves for the maximum home price your income and debt support at a 40% back-end debt-to-income ceiling, then works out the full monthly payment for that price — principal & interest, property tax, homeowners insurance, PMI (if your down payment is under 20%), and HOA. Every default (tax rate, insurance, PMI rate) is shown on the page and editable, not hidden. Full methodology and how the math was independently verified: see our methodology page.
Caveats: this is an educational estimate, not a pre-approval or financial advice. Actual lender approval depends on credit score, full underwriting, and the specific loan program — always confirm with a licensed lender before treating any number here as final.
Next
Day 2: Know how much cash you need
Your down payment isn't the whole story — closing costs, prepaids, and reserves add up too. This page isn't live yet; it's next in the 7-Day Plan build.