Mortgage Calculators

(19 Calculators)
Other Calculator Groups Bookmark and Share More Mortgage Calculators
Previous Calculator   Next Calculator

Mortgage Qualification Calculator

What home price can I afford?

Use this calculator to help you determine the most expensive house you would qualify for. Enter your monthly income, all monthly debt expenses (credit card payments, car payments, loan payments, and any other expenses), and information about your mortgage (down payment amount, loan term, interest rate, property tax rate, private mortgage insurance (PMI), and monthly association dues). This calculator will then show you the highest monthly payment you can afford and the highest priced home you can afford to keep your total monthly housing expenses less than 28% and your debt ratio less than 36% of your total gross monthly income. In general, most lenders do not want your total monthly housing expenses (including property taxes, private mortgage insurance (PMI), and association dues) to exceed 28% of your total gross monthly income. And your total debt ratio cannot exceed 36% of your total gross monthly income.

Popup Calculator  Run as a popup Link  Link to this calculator


User Comments
Name (required)
Email (used to answer questions)
All comments are reviewed for content.
Enter the 5 digit number
Write a comment 0 comments waiting approval

Carlos Perez   Congratulations for this important tools that you provide us. Just a question: Could we change the ratios on the Mortgage Qualification Calculator ? - 3/24/2016 1:27:05 PM


Field Help

Input Fields

TitleA title for these calculator results that will help you identify it if you have printed out several versions of the calculator.

Gross Monthly Salary/IncomeNormal monthly income, including taxes, but not including alimony, child support, etc.

Other Monthly IncomeOther monthly income such as alimony or child support.

Car PaymentsThe total amount you spend each month for all car payments.

Credit Card PaymentsThe total amount you spend each month for all credit card payments.

Other Loan PaymentsThe total amount you spend each month for all loans (not to include mortgage).

Other Fixed Montly ExpensesTotal of all other monthly obligations you have. (Examples are alimony, child support, legal judgment.)

Down PaymentThe amount of money you plan to put as a down payment on your property.

Interest RateThe annual percentage rate you will pay for this loan.

Length of LoanHow long you will pay on this loan. Also choose whether 'Length of Loan' is years or months.

Annual Property Tax RateThe percentage of your home's value that your local government charges annually for property taxes.

Homeowner's InsuranceThe likely amount you will pay for homeowner's insurance on a property valued around the price shown as 'Qualifying Home Value'. Also choose whether this is the amount you will pay per year or month.

Private Mortgage InsuranceThe likely amount you will pay for private mortgage insurance (PMI) on a loan around the amount shown as 'Likely Loan Amount'. (You will probably pay private mortgage insurance if you borrow at least 80% of your property's value.) Also choose whether this is the amount you will pay per year or month.

Association Dues (if any)Any Homeowner's Association dues you will owe as part of your property's Covenants and Restrictions (CCRs). Also choose whether this is the amount you will pay per year or month.

Other EscrowAny other escrow charges (not property taxes, homeowner's insurance, private mortgage insurance (PMI), or association dues since those are entered individually) that will be paid with your monthly mortgage. (If you're borrowing more that 80% of the home's value you'll likely pay PMI.) One example might be Special Service District (SSD) charges. Also choose whether this is the amount you will pay per year or month.

Output Fields

Total Monthly IncomeTotal amount of 'Monthly Income' entered.

Total Monthly ExpensesTotal amount of 'Monthly Expenses' entered.

Principal & InterestThe portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your monthly principal & interest payment.

Property TaxesThe portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your monthly property tax payment.

Homeowner's InsuranceThe portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your monthly homeowner's insurance payment. If 'Homeowner's Insurance' expense (in the section above) is per 'Year', this will be calculated as 'Homeowner's Insurance' / 12 to get the monthly amount.

Private Mortgage InsuranceThe portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your monthly private mortgage insurance (PMI) payment. If 'Private Mortgage Insurance' expense (in the section above) is per 'Year', this will be calculated as 'Private Mortgage Insurance' / 12 to get the monthly amount.

Association DuesThe portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your monthly homeowner's association dues payment. If 'Association Dues' expense (in the section above) is per Year, this will be calculated as 'Association Dues' / 12 to get the monthly amount.

Other EscrowThe portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your other monthly escrow payment. If 'Other Escrow' expense (in the section above) is per 'Year', this will be calculated as 'Other Escrow' / 12 to get the monthly amount.

Likely Max Monthly MortgageBased on your monthly expenses, down payment, anticipated interest rate and mortgage escrow expenses, your monthly mortgage payment should be at most this amount.

Housing Debt RatioThe percentage of your monthly income that goes to pay for housing.

Total Debt RatioThe percentage of your monthly income that goes to pay all your debt (including housing).

Likely Loan AmountA mortgage lender will likely finance about this amount for you. This amount is calculated on either your 'Housing Debt Ratio' reaching the maximum 28% or your 'Total Debt Ratio' reaching the maximum 36%.

Qualifying Home ValueYou should be looking to buy a home or property valued at this or less. This amount is simply the 'Likely Loan Amount' + 'Down Payment' amounts.

Copyright © 2005-2017 PeteSoft, LLC. All Rights Reserved