Financial Planning Tool

For a $400,000 house, you typically need $80,000-100,000 annual income using the 28% housing rule. With 20% down ($80,000), your monthly payment would be ~$2,400. This requires ~$8,600 monthly gross income. Our calculator shows exact requirements based on your situation.

Mortgage rates in 2025 typically range from 6.5-8% for 30-year fixed loans, depending on your credit score, down payment, and lender. Rates above 740 credit score get the best terms. Use our calculator with current rates from FRED data to see your estimated payment.

For a $400,000 house, you typically need $80,000-100,000 annual income using the 28% housing rule. With 20% down ($80,000), your monthly payment would be ~$2,400. This requires ~$8,600 monthly gross income. Our calculator shows exact requirements based on your situation.

Mortgage rates in 2024 typically range from 6.5-8% for 30-year fixed loans, depending on your credit score, down payment, and lender. Rates above 740 credit score get the best terms. Use our calculator with current rates from FRED data to see your estimated payment.

This calculator demonstrates the common 28/36 rule: typically 28% of gross income for housing, 36% for total debt. The calculation shows: Available Housing Budget = min(Income × 0.28, (Income × 0.36) - Current Debts). This educational example finds the highest home price where Total Monthly Payment ≤ Available Budget.

Your total payment includes: Principal & Interest (loan payment), Property Taxes, Homeowners Insurance, PMI (if down payment < 20%), and HOA fees. This is often called PITI+HOA. For example: $1,500 P&I + $400 taxes + $150 insurance + $100 PMI + $200 HOA = $2,350 total monthly payment.

Many loan programs allow as little as 3% down (conventional) or 3.5% (FHA). A 20% down payment eliminates PMI insurance, reduces monthly payments, and may make offers more competitive. With less than 20% down, PMI is typically required until you reach 20% equity.

PMI (Private Mortgage Insurance) protects the lender if you default. It costs 0.3-1.5% of loan amount annually. You can remove PMI when you reach 20% equity through: payments over time, home value appreciation, or home improvements. Some loans auto-cancel PMI at 22% equity.

Credit scores significantly impact rates: 760+ gets best rates, 700-759 adds ~0.25%, 640-699 adds ~0.75%, below 640 adds 1.5%+. On a $300,000 loan, poor credit costs an extra $270/month. Improve your score before applying to save thousands.

30-year: Lower monthly payments, more flexibility, but more total interest. 15-year: Higher monthly payments, less total interest, faster equity building. Example: $300K loan at 6.5% - 30yr: $1,896/month, $382K total interest; 15yr: $2,613/month, $170K total interest.

Closing costs typically run 2-5% of home price and include: loan origination fees, appraisal, inspection, title insurance, attorney fees, and prepaid taxes/insurance. On a $400K home, expect $8K-$20K in closing costs. Some can be negotiated with the seller.

Save for: Down payment + Closing costs (2-5% of price) + Moving expenses + Emergency fund (3-6 months of new housing payment) + Immediate repairs/furnishing. For a $400K home, budget $50K-$80K total cash needed.