How much can I actually afford (and how does the ‘Stress Test’ work)?

March 28 2026

This remains the #1 question. In 2026, affordability is the primary hurdle for most borrowers.

The Answer: Lenders don't just look at what you can pay today; they test if you could still afford the mortgage payment if rates rose. The "Stress Test" makes borrowers qualify at their contract rate plus 2%, or a floor rate (currently around 5.25%), whichever is higher.

2026 Context: Many buyers are now asking about the 30-year amortization expansion, which has helped lower monthly payments for those who qualify, particularly first-time buyers or those purchasing new builds.