Affordability Calculator

Monthly payments shown constitute an estimate and are provided for informational purposes. This does not constitute an offer for a mortgage loan. Payments shown do not include taxes and insurance.

Home Affordability Calculator

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The mortgage affordability calculator estimates how much house you can afford based on your income, monthly expenses, and the details of your mortgage. It’s an easy-to-use tool that helps you find a home that fits within your budget. All you have to do is input the necessary information, then the affordability calculator does the rest. It quickly determines how much money you could afford to spend on your home and what your estimated monthly mortgage payment would look like.

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Mortgage Loan Calculator

Annual Income

Your annual income is one factor that a lender considers when establishing a baseline for what you can afford to pay every month. When calculating you annual income, you should consider any money you receive on a regular basis, such as your salary or income from investments. It should include your income and your co-borrower’s income, if you’re buying a home jointly.

Monthly Debt

How much debt you have directly affects how much house you can afford. When determining how much house you can afford, a good guideline to follow is the 36% rule. Your total monthly debts, including your projected mortgage payment, should not exceed more than 36% of your gross income. This is considered your debt-to-income (DTI) ratio. The lower your DTI, the more money you can borrow and the more options you have for loans.

Once you input your information into our mortgage affordability calculator, we estimate the amount of house you can afford based on a DTI of 36%. If you want to increase your DTI, you can slide the bar to see how it affects the amount of house you can afford. Most loans require that your DTI doesn’t exceed 45%.

Down Payment

Your down payment plays a big part in our affordability calculator. The more money you put down, the more house you can afford to buy. If you don’t have a lot of money saved, you could still get a mortgage with little-to-no money down; it would just decrease the amount of house you could afford to buy.  

Interest Rate

Your mortgage interest rate makes a difference in how much you spend on your home. Our mortgage affordability calculator has a preset interest rate of 3.875, but you can easily adjust that rate according to today’s estimated interest rates. Interest rates change daily and your lender determines your interest rate based on your credit profile.

Loan Term

How long do you want to finance your home? The longer your loan term, the more house you can afford. The shorter your loan term, the less house you can afford to buy unless you increase your down payment.

Keep in mind that our house affordability calculator only provides an estimate of what you could afford. You can call us today to speak with one of our Loan Consultants to get prequalified and to find out how much you can spend on a home.

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