Mortgage Affordability Calculator
This will let you know the approximate purchase price of the house you can afford.
Use your Gross Income in the annual income field. Do not use your take home income.
Monthly debts is your monthly expenses that show on your credit report and includes a total of the following: Auto loan payment, Credit card payment(s) (use the minimum month payment even if you pay off the card(s) every month), installment loans, student loans.
Put in the dollar amount you have available for the down payment. Remember that you will also need to have money for closing costs.
Most mortgages are a 30 year mortgage. Use 30 for years.
Get the mortgage rate from the home page of this website. Round up to the next eighth of a point. (.125, .250, .375, .500, .625, .750, .875)
The debt to income ratio ranges from 35% to 45% depending on the loan program you apply for.
Press the calculate button and you will see the purchase price of the home you can afford.
Please Note: This will give you a close idea of how much house you can buy. Mortgages are complicated. Your loan officer will be able to give you an accurate dollar amount. I have some great lenders I work with. Contact me for their contact information.