A worked example
Boca Raton · Houses · 18.6% down · 6.75% · 30 years
1Monthly budget$3,400
2Minus insurance and HOA$400 + $350 for this city and home type− $750
3Left for the loan and property tax$2,650
4Monthly cost per $1 of price81.4% loan × 0.649% + 1.1% tax ÷ 12 + mortgage insurance0.63¢
5Price, rounded down to $5,000$2,650 ÷ 0.006298 = $420,800$420,000
| Assumption | Where it comes from |
|---|---|
| Monthly budget | The full cost of owning, not just the loan: principal and interest, property tax, homeowners insurance, HOA dues and, when needed, mortgage insurance. |
| Home price | Insurance and HOA come off the budget first. The rest is divided by the monthly cost of each dollar of price (loan payment plus property tax) and rounded down, so the price never costs more than your budget. |
| Interest rate | An illustrative table by loan program and term, adjusted for the credit range you pick. Not a live quote — you can change it yourself. |
| Property tax | A typical percent of the price per year for the city. |
| Insurance & HOA | Typical monthly amounts for the city and home type. Your actual bills may differ. |
| PMI (Conventional) | Only when the down payment is under 20%. The yearly percent depends on the down payment and credit range. |
| FHA | A 1.75% upfront fee is added to the loan. Yearly mortgage insurance (MIP) of 0.55% of the base loan amount is paid monthly. |
| Jumbo loan | A Conventional loan above the conforming limit of $832,750 (2026, one-unit home, FHFA) is a jumbo loan. Lenders set their own rules; we assume at least 10% down. Home prices on this site go up to $3,000,000. |
Estimates only. Results are illustrative, based on your inputs and the assumptions on this page. They are not a loan offer, pre-approval, appraisal or commitment to lend. Actual rates, costs and eligibility depend on your lender, your credit and the property.