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

What’s the Timeline for Selling A House? Your Step-by-Step Guide

by Staff Writer | January 14, 2024 | Selling | 0 Comments

Welcome to the Big Sale! Getting ready to sell your house but aren't sure where to start or how long it takes before you can post that "Sold" sign? We've outlined the timeline for selling a house in a step-by-step guide that will turn this process into a walk in the...

The Art of Home Seller Etiquette: Don’t Miss These Tips!

by Staff Writer | July 10, 2024 | Selling | 0 Comments

Master the art of home seller etiquette with our expert guide. Learn the dos and dont’s so you can impress buyers.

South Florida Condo Market: Navigating Challenges in 2024

by Staff Writer | September 13, 2024 | NAR settlement claims | 0 Comments

South Florida condo market is experiencing a noticeable slowdown, driven by a combination of factors including rising insurance costs, new regulatory requirements, and changing market dynamics.

How to Boost Your Open House Appeal: Proven Techniques

by Staff Writer | May 16, 2024 | Selling | 0 Comments

Hey there, savvy homeowners! Want to make your home the star of the show during an open house? Want to learn how to set the stage just right so potential buyers are instantly smitten? Today, we're dishing out the secrets on how to boost your open house appeal. The...

Why Millennials and Gen Z are Moving to the Exurbs

by Staff Writer | February 3, 2024 | Buying, Living, Sustainable, Trends | 0 Comments

Are you dreaming about a change of scenery in 2024? If you're a Millennial or Gen Z'er, there's a good chance you are. The buzz around town is all about exurb migration. It's a trend that's gaining momentum among younger generations. We're seeing a shift from urban...

Home Buying Checklist

by Staff Writer | September 2, 2023 | Buying, Checklist Articles | 0 Comments

Essential tasks to transform your home buying process into an organized and confident endeavor. Embarking on the journey to buy a new home is an exhilarating experience, but it can also be a complex and daunting one. With numerous tasks to complete, decisions to make,...

17 Tips for a Stress-Free Relocation

by Staff Writer | June 15, 2024 | Checklist Articles, Living, Moving | 0 Comments

Moving is made easier with a little planning: here's to smooth sailing and a seamless move. Here are 17 helpful moving tips to make your relocation smoother and less stressful: ) Plan Ahead: Start planning your move well in advance. Create a checklist, set a budget,...

Getting Your Home Ready

by Staff Writer | September 8, 2023 | Checklist Articles, Selling | 0 Comments

Here's a step-by-step guide to help you get your home ready for the market: Preparing your home for sale is essential to attract potential buyers and get the best possible price. Declutter and Depersonalize: Start by decluttering every room. Remove personal items like...

Energy Efficient Mortgage: Save Money and Energy

by Staff Writer | May 2, 2024 | Home Improvement, Sustainable | 0 Comments

Are you looking for ways to make your home more energy-efficient while also saving money? Hey there, future and current homeowners! An Energy-Efficient Mortgage (EEM) might just be the answer you're looking for. If you're considering buying a new home or refinancing...

18 Home Staging Hacks

by Staff Writer | October 20, 2023 | Selling | 0 Comments

Transforming Your Space to Sell Selling your home is a significant endeavor, and creating the right first impression is crucial to attract potential buyers. Home staging, the art of enhancing your property's visual appeal, can make a world of difference in the real...

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.