Allen Markel, REALTOR® · Texas Premier Realty

Buying

What can I afford?

Income and debts in — a comfortable target price out, with the 36% math shown.

Minimum payments — not groceries or utilities.

Today's 30-year average: 7.40% (Freddie Mac survey via FRED, week of Oct 8, 2026). Edit to your lender's quote.

Property tax: 2.25% typical in Harris County. Typical total rate for the 17,580 homes for sale in Harris County (median of their certified 2025 tax bills; most are between 2.13% and 2.51%). Add your ZIP for a closer figure.

Typical in Harris County: $81/mo (74% of homes for sale there list an HOA). Set 0 if yours has none.

A comfortable target price

$236,404

36% of income (total debt ceiling)
$2,880
Minus your monthly debts
−$600
Room for the house payment
$2,280
Principal & interest ($221,404 loan)
$1,533
Property tax (2.25% typical)
$443
Home insurance (budgetary est.)
$108
PMI (est., 0.62% a year at 6.3% down)
$114
HOA dues
$81

Backed into a price using the typical 2.25% total property-tax rate in Harris County, budgetary insurance, estimated PMI under 20% down (Freddie Mac: about $30–$70 a month per $100,000 borrowed) and your HOA. Lenders may approve more — this is the comfortable number.

Live listings across our six counties.

We’re not a lender and this isn’t an application — it’s a budgetary estimate using the classic 36% guideline. A lender pre-approval is the real number; we’re happy to introduce you to one below.

Talk to a lender

These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Numbers raising questions? Walk through them with a person.

Schedule time with Allen

Questions about Affordability

What it does

  • How does the affordability calculator work out a comfortable price?

    It starts from the 36% guideline: it takes 36% of your gross monthly pay as a ceiling on total debt, subtracts your monthly debts, and treats what remains as room for the house payment. It then backs into a price that fits principal and interest, property tax, insurance, mortgage insurance and any HOA dues. The page shows each step so you can see where the number comes from.

The inputs

  • What counts as monthly debt payments in the calculator?

    Enter the minimum payments on things like cars, credit cards and student loans. The page notes these are minimum payments, not groceries or utilities. Leaving a debt out will make the answer look better than it is, and a lender will include it, so list every recurring loan or card payment you carry.

  • Should I enter my gross or take-home pay?

    Enter your gross monthly household pay, meaning before taxes and deductions. The 36% guideline is built on gross figures, which is how lenders usually look at it. Using take-home pay would understate what the calculator shows, so use the pre-deduction number from your pay records.

  • How much does the down payment change the result?

    A larger down payment reduces the loan, which lowers the monthly payment and can reduce or remove mortgage insurance. That leaves more room in your budget for the price. The calculator estimates mortgage insurance when the down payment is under 20%. Try a few down payment amounts to see how sensitive the target price is.

  • Why does the calculator ask for the county and ZIP code?

    Property tax is a large part of the monthly payment and varies by area. The calculator uses a typical rate for the county you pick and lets you add a ZIP code for a closer figure. It also shows a typical HOA amount for the county, which you can set to zero if your target homes have none.

  • Which loan term should I choose in the calculator?

    The calculator offers 30, 20 and 15 years. A shorter term raises the monthly payment but pays the loan off sooner, so for the same budget it supports a smaller price. Try each to see the effect. Which term fits depends on your cash flow and goals, so talk to us if you want to think it through.

Reading the result

  • Does the comfortable price mean the most I can borrow?

    No. The page calls it a comfortable target, and says lenders may approve more. It is a budgetary number based on a classic guideline, not the ceiling a lender would set. Being approved for more does not mean you should spend it, so think about your own comfort with the payment before choosing a price range.

  • What is included in the monthly payment the calculator shows?

    The breakdown includes principal and interest, property tax, a budgetary home insurance estimate, estimated mortgage insurance when the down payment is under 20%, and HOA dues. Seeing each line helps you spot which one is pushing the number, such as a high tax rate or an HOA, so you can adjust your search accordingly.

  • Why is my target price lower than the price I was looking at?

    The calculator is conservative on purpose, because it follows the 36% guideline and counts tax, insurance, mortgage insurance and HOA dues. A smaller down payment, higher debts or a high-tax area all reduce the target. Check each input, then ask a lender what they would approve. Talk to us if you want to look at options that fit.

Limits

  • Is the affordability result a pre-approval?

    No. The page says it is not an application and not a lender's number. It is a budgetary estimate using the 36% guideline. A lender pre-approval is the real figure, and it also shows you what documents you will need. We can introduce you to lenders we work with if you would like to take that step.

  • What does the affordability calculator leave out?

    It does not know your credit, your loan program, or your exact insurance quote, so it uses estimates for those. It also does not include moving costs, repairs, or the cash you will need at closing. Use Cash to close alongside it to see up-front cash, and let a lender run your exact figures.

Next steps

  • How do I use the result to start looking at homes?

    The page links the result to live listings under that target price across our six counties, so you can look at what is actually available. Treat the figure as a starting range and adjust it as you test different down payments and rates. Talk to us if you want help narrowing the search around your numbers.

  • What should I change in the calculator to see a different outcome?

    Try lowering your monthly debts, raising the down payment, changing the term, or editing the rate to a lender's quote. Each change shows how sensitive the target price is. Paying down a card before applying is one example people test. A lender can tell you which changes would actually matter on your file.

Using the tool

  • What counts as monthly debt in the affordability tool?

    Enter the minimum monthly payments on cars, cards and student loans. Do not include groceries or utilities. Lenders look at these payments when they review your file, so the number has a real effect on the target price. A loan originator will check your credit report for the full list.

  • Why is the result called a comfortable target and not a maximum?

    Because a lender may approve more than what feels comfortable month to month. The tool uses a cautious guideline so you leave room for repairs, savings and everything else. Your own comfort level is personal. A loan originator can show how much you could be approved for, and we can help you decide how much of it to use.

  • Does the affordability result include taxes and insurance?

    Yes, it builds in a typical property tax rate for the county you pick, a budgetary insurance figure, estimated mortgage insurance when the down payment is under 20% and any HOA dues you enter. They are estimates, so check a specific home's actual taxes, insurance quote and dues before relying on a price.

  • How can I raise the target price?

    Common levers are a larger down payment, paying down monthly debts, a lower interest rate and a longer loan term. Each has a tradeoff, and the tool lets you test them. Which makes sense depends on your cash, goals and timeline. Talk to us to build a plan around your circumstances.

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