Affordability Calculator

Calc Affordability

Yearly Income

$.00

Monthly Debt

$Mo

Monthly debts (credit cards, loans, etc.)

Down Payment

$.00

Interest

Loan Term

Years

Mortgage Amount

Purchase Budget

Taxes, Fees and Financial

Download this Calculation

If you are human, leave this field blank.

Clicking the submit button will allow you to download a pdf of your calculations

Notes

Front-End Ratio: 28%. This means your monthly housing expenses, including your mortgage payment, property taxes, homeowner’s insurance, and PMI (if applicable), should not exceed this percentage.

Back-End Ratio: 36%. This means your total monthly debt payments, including housing expenses and other debts like car loans and credit card payments, should not exceed this percentage. This is the amount used on this form to calculate affordability.

Down Payment

Enter the down payment you plan to contribute toward the purchase of your home. If your down payment is less than 20%, you may be required to pay mortgage insurance.

Frequently Asked Questions

Here are some of the most frequently asked questions about home affordability and why it matters.

How is Your Mortgage Interest Rate Determined

The foundation of home affordability hinges on your mortgage interest rate. When evaluating your ability to afford a home, it’s crucial to consider the estimated interest rate associated with your mortgage.

Your debt-to-income ratio.
Your track record of timely bill payments.
Verification of a stable income source.
The extent of your down payment, along with additional reserves for closing expenses and other costs associated with relocating to a new residence.

Once lenders ascertain your qualification for a mortgage, they proceed to determine the interest rate applicable to your loan. Your credit score plays a significant role in shaping the mortgage rate you’ll receive.

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

What is home affordability?

This question seeks to understand the concept of home affordability and how it is determined.

What is a debt-to-income ratio and CALCULATE IT

This question aims to clarify the significance of the debt-to-income ratio in the home affordability equation.

Please select a valid form

What role does my credit score play in determining my home affordability?

Understanding how credit scores affect the mortgage interest rate and, consequently, home affordability is a common concern.

How do lenders assess my eligibility for a mortgage?

People often want to know the criteria and process that lenders use to evaluate whether they qualify for a mortgage.

Are there any government programs or incentives to help with home affordability?

This question is relevant for individuals seeking information on available programs or assistance for homebuyers.

What is the ideal percentage of my income to allocate to housing costs?

Homebuyers may inquire about recommended guidelines for the portion of their income that should go towards housing expenses.

How can I improve my home affordability?

This question focuses on strategies and tips for making homeownership more affordable, such as improving credit scores or saving for a larger down payment.

What is the relationship between interest rates and monthly mortgage payments?

This question delves into how changes in interest rates can impact the monthly cost of a mortgage and, consequently, home affordability.

Should I consider adjustable-rate mortgages (ARMs) for greater affordability?

Prospective homebuyers may want to know about the advantages and disadvantages of adjustable-rate mortgages compared to fixed-rate mortgages in terms of affordability.

What are the common pitfalls to avoid when assessing home affordability?

This question addresses potential mistakes or misconceptions that individuals should be aware of when determining their home affordability.

Is it better to rent or buy a home in terms of affordability?

Some people may be unsure whether renting or buying is the more cost-effective option, and this question explores the factors to consider.

How do property taxes and insurance affect home affordability?

Homebuyers may inquire about the impact of property taxes and homeowners insurance on their overall housing costs.

Can I refinance my mortgage to improve affordability?

This question examines the possibility of refinancing as a strategy to make homeownership more affordable, especially when interest rates change.

Disclaimer

In order to receive a helpful estimate, it’s important that you input accurate information.

Results in no way indicate approval or financing of a mortgage loan. Contact a mortgage lender to understand your personalized financing options.

Helpful Need To Knows about Mortgages

Florida Mortgage Rates

30 Year Fixed

15 Year Fixed

5/1 ARM

View Trend

Source: Mortgage Rates

Loan for a Fixer-Upper or Home Improvements: The FHA 203(k)

by MIke Chadwick | June 23, 2024 | Finance, Home Improvement | 0 Comments

Do you need a loan to help you buy a fixer-upper or finance home improvements for your existing home? You can transform your home with ease. Discover the power of FHA 203(k) financing! A Government-Backed Loan for Home Improvements With the Federal Housing Authority...

Home Improvement Checklist for Success

by MIke Chadwick | August 25, 2023 | Checklist Articles, Home Improvement | 0 Comments

Below is a checklist that you can use as a template for your home improvement project or Download the PDF: Read the article The Essentials of Successful Home ImprovementThe Essentials of Successful Home Improvement Creating a comprehensive home improvement checklist...

10 Essential Tips to Find the Perfect Home for Your Family

by MIke Chadwick | April 5, 2024 | Buying | 0 Comments

Looking for the perfect home for your family? It's like a fun and exciting treasure hunt! But we also know that uncertainty can arise when determining which features to prioritize while also ensuring a wise investment. If you feel this way, you're not alone. Many...

Strategic and Affordable Home Improvements that Pay Off

by MIke Chadwick | May 6, 2024 | Home Improvement | 0 Comments

Have you ever looked around your home and thought, "This place could use a little sprucing up?" We're all interested in increasing the enjoyment and value of our properties. But where do you start? And how can you ensure your home improvements pay off in the long run?...

Selling Your House with a Mortgage: What to Know

by MIke Chadwick | April 12, 2024 | Learn About Financing, Selling | 0 Comments

Welcome to selling your house with a mortgage 101! In this article, we'll guide you through the entire process of selling a home with a mortgage. From understanding the different types of mortgages to the extra steps involved with the different types, we've got you...

Sell Your House by Owner: The Right Path for You?

by MIke Chadwick | May 22, 2024 | Selling | 0 Comments

If you're thinking about selling your home, one of the first questions that often comes up is whether to go the "For Sale By Owner" (FSBO) route or hire a realtor. Making this decision to sell your house by owner requires consideration of various factors, such as your...

The Home Buyer’s Viewing Inspection Checklist

by MIke Chadwick | October 14, 2023 | Buying, Checklist Articles | 0 Comments

Find Your Dream Home Checklist Buying a home is one of life's biggest investments. Thoroughly evaluate properties during viewings to find your perfect fit. Our comprehensive checklist empowers you with confidence, helping assess every detail from curb appeal and...

20 Ways to Stunning Listing Photos

by MIke Chadwick | October 18, 2023 | Checklist Articles | 0 Comments

Capturing the Charm They say a picture is worth a thousand words, but when it comes to visually selling your home, it might just be worth a thousand offers. The art of listing photos is a powerful tool in today's real estate market, where first impressions are often...

Your Complete House Buying Checklist for 2024

by MIke Chadwick | January 7, 2024 | Buying, Checklist Articles | 0 Comments

Hey there, future homeowner! Are you ready to ditch the world of renting and buy your very own home in 2024? We know the process can feel like a maze, but don't worry! Our comprehensive house-buying checklist will help you navigate it. 1. Determine Your Home Buying...

10 Tips for Stress-Free Moving with Pets

by MIke Chadwick | August 19, 2023 | Checklist Articles, Living, Moving | 0 Comments

Pets can become stressed during a move due to changes in their environment and routines. Moving homes is exciting, but for our beloved pets, it can also be a time of stress and confusion. To make the transition as smooth and comfortable as possible to maintain their...

Demystifying Mortgage Interest Rates

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

Keep in mind that mortgage terms and conditions can vary, so it’s crucial to work closely with a qualified mortgage professional to tailor your mortgage to your unique financial situation and homeownership goals

The frequently asked questions here, provide valuable information for individuals looking to understand and navigate the complexities of home affordability.