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Affordability & Mortgage Calculator

Affordability Calculator

The affordability calculator is calculated based on the percentage of your income spent on monthly debt. Most lenders limit how much of your monthly income can pay debt such as mortgage payments, car loans, and student debt (this is called Debt to Income ratio). A typical limit is 41% - 45% of your monthly income, but this can vary by loan type and other determining factors such as down payment, term, credit score, and disposable income.

Your remaining income after debt and taxes should be enough to cover living expenses and savings goals. It is also wise to have cash set aside to pay for any large unexpected repairs or financial emergencies.

Step 1 What's this?

This is the combined base monthly salary income for the borrower and co-borrower, bonus and overtime from the borrowers primary employer.

Step 2 (optional) What's this?

This includes other income such as tips, rental income, investment income, alimony, child support, etc. This income will need to be documented and verified by tax returns, paystubs, and bank statements.

Step 3 What's this?

Include all of you and your co-borrowers monthly debts, including: minimum monthly required credit card paymnets, car payments, student loans, alimony/child support payments, any house payments, rental property maintenance, and other personal loans with periodic payments.

Step 4 What's this?

This is the amount of money you will put towards a down payment on the house. It is wise to make sure you still have cash left over after the down payment to cover unexpected repairs or financial adversities.

Step 5 What's this?

This is the interest rate for the loan you will receive.

Step 6 What's this?

This is the length of time you choose to pay off your loan (30 years, 20 years, 10 years, etc).

The estimated amount you can afford... Monthly




What's this?

Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the homes purchase price. It protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Also known as PMI (Private Mortgage Insurance).



What's this?

The mortgage payment calculator includes estimated property taxes. The value represents an annual tax on homeowners property and the tax amount is based on the homes value.