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Debt Impact on Mortgage Calculator

Your existing debt directly reduces how much mortgage you can qualify for. Find out if your current debt load will prevent you from buying your target home — and what to do about it.

What you'll need

  • Gross monthly income
  • Total existing monthly debt payments
  • Target home price and down payment
  • Expected mortgage interest rate

What you'll get

Max affordable home price

Given your current debt load

DTI with proposed mortgage

See if you qualify

Debt reduction needed

How much to pay off to qualify

Qualification assessment

36% and 43% DTI check

How It Works

1

Enter your income and debts

Input gross monthly income and all minimum monthly debt payments.

2

Add proposed mortgage

Enter the target home price and expected loan terms.

3

See DTI impact

Receive front-end and back-end DTI ratios and how much mortgage you can qualify for.

DTI Limits by Loan Type

Loan TypeFront-End DTIBack-End DTI
Conventional28%36–43%
FHA31%43–50%
VANo limit41%
USDA29%41%

Lower DTI = better mortgage terms and easier qualification.

Frequently asked questions

How does existing debt affect my mortgage approval?

Existing debt raises your debt-to-income ratio, reducing how much mortgage you can qualify for. Each $100 in monthly debt payments reduces your maximum mortgage by roughly $15,000–$20,000. Paying off debt before applying can significantly increase your purchasing power.

Should I pay off debt before buying a house?

It depends on your DTI and the interest rates. If your current debt pushes your DTI over 43%, paying it off may be necessary to qualify. Even if you qualify, reducing debt before buying frees up monthly cash flow for homeownership costs like maintenance and utilities.

What debts count against my DTI for a mortgage?

Lenders include all monthly minimum payments on revolving debt (credit cards), installment loans (auto, student, personal loans), alimony, child support, and other court-ordered payments. They typically exclude utilities, insurance, cell phone, and subscriptions.

Ready to see your debt's impact?

Analyze My Debt Impact →