One of the most common questions people ask when starting their home search is: “How much house can I afford?” It’s a simple question with big implications, and now, Redfin helps you answer it in real time while you’re browsing.
We’ve rolled out a new feature that shows your buying power directly on each home’s listing page. Whether you’re casually exploring or getting serious about making an offer, this tool gives you instant clarity on whether a home fits your budget.
How We Calculate Your Buying Power
We use your income and monthly debt to calculate your debt-to-income ratio (DTI)—a key factor lenders use to determine how much home you can afford.
Our estimate is based on a DTI of 36%, which is a common guideline for how much of your income should go toward debt. That includes your mortgage payment, plus other monthly obligations like car loans or credit cards.
To help you understand how a home price fits your budget, we’ve grouped DTI ranges into three categories:
- Affordable (0%–36%): You’re in a comfortable range based on typical lending standards.
- Stretch (37%–50%): You may qualify, but it could be tighter on your monthly budget.
- Ambitious (Above 50%): This may be difficult to afford without significant income or savings.
As a general rule, you should aim to spend around 28% of your pre-tax income on your mortgage, and another 8% on other debts. This helps ensure you have room for savings, emergencies and everyday expenses.
Start Exploring Your Buying Power Today
This new affordability feature is now available on Redfin.com and our iOS app. When you’ve found the home that’s right for you, we can connect you with Rocket Mortgage to get prequalified for a loan and with a Redfin agent to schedule a tour.
See how exclusive Rocket Preferred Pricing can help you take the next step in your homeownership journey today.
Clients who finance with Rocket Mortgage and either (a) purchase a home using a Redfin agent or Redfin partner agent or (b) buy a property where Redfin is the listing brokerage, are eligible for one of two offers from Rocket Mortgage: (1) A 1% interest rate reduction for the first year of the loan, or (2) A lender-paid credit of 0.75% of the loan amount, up to $6,000. Offer valid only on retail loans with conforming loan limits, and cannot be combined with any other discounts. Rocket Mortgage may cancel/modify this offer at any time. Additional restrictions/conditions apply. This is not a commitment to lend.
All mortgage lending products and information are provided by Rocket Mortgage, LLC | NMLS #3030; www.NMLSConsumerAccess.org. Licensed in 50 states. For additional information, please visit RocketMortgage.com. Rocket Mortgage is an affiliate of Redfin. You aren’t required to use its lending services. Learn more at redfin.com/afba.
