Annual income.
This is what you earn in a year — before taxes and deductions come out. You'll usually find it on your W-2 or last pay stub. Buying with a partner? Add both incomes together, and don't forget to include stable side income like bonuses, tips, or commissions if they show up year after year.
Why it matters: your income is the ceiling on what you can borrow. The stronger and more stable it is, the more house you can realistically afford.
Monthly debts.
Add up the minimum monthly payments on your credit cards, car loans, student loans, personal loans, and anything else you're on the hook for — including alimony or child support. This is what lenders call your "debt load," and it directly reduces how much they'll let you borrow.
Why it matters: every dollar of debt is one less dollar you can safely put toward a mortgage. Paying off a credit card or two before you apply can seriously boost your buying power. Curious what your payoff timeline looks like? Run it through our home profit calculator.
Down payment.
The cash you bring to closing. A 20% down payment is the classic benchmark — it keeps you out of PMI territory and usually earns you a better rate. But it's not required. Many conventional loans work with 3% down, FHA loans start at 3.5%, and VA loans can go as low as $0 down if you qualify.
Why it matters: the bigger your down payment, the smaller your loan — and the lower your monthly bill. Just don't drain every dollar of savings to hit that 20% mark. A safety cushion is non-negotiable. Short on cash? Check if you qualify for down payment assistance — there are thousands of programs offering grants and forgivable loans.
Debt-to-income ratio.
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes to debt payments — including your future mortgage. Lenders love this number. Most want to see it at 43% or lower, but the sweet spot for real comfort is closer to 36%. The CFPB explains why the 43% DTI threshold matters for mortgage qualification.
Why it matters: DTI is the single biggest signal a lender uses to decide if you can handle the payments. A lower DTI means more approval power, better rates, and way less stress every month.
Interest rate.
We pre-fill the calculator with today's average 30-year rate so you can get started fast. If a lender has already quoted you a rate, punch that in — you'll get a much more accurate number. Your actual rate depends on your credit score, income, down payment, and current market conditions.
Why it matters: a tiny rate change is huge over 30 years. Even half a percent can mean tens of thousands more (or less) in total interest paid. That's why it pays to compare multiple mortgage lenders before locking in your rate.
Loan term.
The length of your mortgage — usually 15, 20, or 30 years. We default to 30 because it's the most common choice. A 15-year loan has higher monthly payments but saves you a ton of interest, while a 30-year keeps your monthly bill low at the cost of paying more over time. The way each payment splits between principal and interest is called amortization.
Why it matters: term length is a trade-off between monthly breathing room and long-term savings. Pick the one that actually fits your life, not just the math.
Property taxes, insurance & HOA.
These are the "hidden" costs most calculators gloss over — but they're part of your real monthly payment. Property taxes vary wildly by state and county. Homeowners insurance is usually required by your lender. And if you're buying in a condo, townhouse, or gated community, you'll probably have HOA fees on top. Title insurance and escrow are handled separately — you can learn more from Beycome Title.
Why it matters: two homes with the same price tag can have very different monthly payments once you add all this in. Always shop by the full monthly cost, not just the sticker price.
The one most calculators hide: commission.
Here's the one nobody talks about: a typical 3% buyer agent commission is baked right into the purchase price. It doesn't show up on your monthly payment, but you absolutely pay for it — as part of your loan, with interest, every single month.
Why it matters: when you buy with Beycome, we rebate up to 2% of that commission back to you at closing. That's cash you can use for closing costs, furniture, or just a bigger cushion. Most calculators pretend this cost doesn't exist. We show you exactly what it's costing you — and how much you could save. See exactly how it works or jump into the Beycome buyer program to claim your rebate.
