Mortgage Affordability Calculator | Smart Home Loan Planning Tool

Mortgage Affordability Calculator

Determine how much you can afford to borrow for your dream home

Annual Income

Monthly Debts

Down Payment Amount

Interest Rate (%)

Loan Term (years)

Maximum Affordable Home Price

Monthly Mortgage Payment

Recommended Down Payment

Loan Amount

How to Use the Mortgage Affordability Calculator

Enter Your Financial Information

Input your annual income, monthly debts, and down payment amount using the sliders or direct input fields.

Adjust Loan Parameters

Set your preferred interest rate and loan term to see how these factors affect your affordability.

Calculate Your Results

Click the "Calculate Affordability" button to see your maximum home price and monthly payment.

Analyze Your Results

Review the detailed breakdown of what you can afford and adjust inputs to explore different scenarios.

Frequently Asked Questions

How to determine how much mortgage I can afford?

Our calculator uses the 28/36 rule: no more than 28% of your gross monthly income should go toward housing costs, and no more than 36% toward total debt. Adjust based on your personal financial situation.

How to improve my mortgage affordability?

You can improve affordability by increasing your down payment, paying off existing debts, improving your credit score to qualify for better rates, or considering a longer loan term.

How to calculate my debt-to-income ratio?

Your debt-to-income (DTI) ratio is calculated by dividing your total monthly debt payments by your gross monthly income. Lenders typically prefer a DTI ratio of 36% or less.

How to plan for a down payment?

Aim to save at least 20% of the home's value for a down payment to avoid private mortgage insurance (PMI). Consider automatic transfers to a dedicated savings account and explore down payment assistance programs.

How to get the best mortgage interest rate?

Improve your credit score, shop around with multiple lenders, consider different loan types, and potentially buy points to lower your rate. Also, timing your application when rates are favorable can help.

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