Home Affordability Calculator

How Much Home Can I Afford?

If you’re in the market for a new home, there is a question you should answer before you start talking to realtors or sellers. That question is: How much home can I afford? Or in other words, based on your current financial standing, debt obligations, and the current mortgage rates, how much can you and should you realistically borrow for a home over the next 15, 20, 30 years to determine what your monthly payment will be.

Fortunately, determining your mortgage payment on this amount or range is fairly simple. With the 4-step Home Affordability Calculator below you can input different pieces of information that will affect your borrowing ability and find out how much you can afford in a home.

Calculate the price of homes you could be looking for by using the free Home Affordability Calculator below.

Now that you’ve used the Home Affordability Calculator to know how much home you can afford, talk with a Mortgage Advisor to find a lender who can best help you buy your home. Contact a Mortgage Advisor by calling (866) 984-1240 or fill out our quick 1-minute form to have a Mortgage Advisor contact you.

How To Use The Home Affordability Calculator

The home affordability calculator above allows you to see how much home you can afford. Find out how much you can afford by providing the calculator with different amounts as they relate to the information fields below.

• Estimated down payment (how much do you or will you have saved or have available in liquid assets to pay for a home at the time of purchase?)
• Desired loan amount (what is the price of homes you think you want to buy?)
• Estimated interest rate (use current rates found, here)
• Desired loan term length (typical loan terms include 15, 20, 30 years)
• Front-end ratio (conventional loans typically allow for up to 28 percent)
• Back-end ratio (conventional loans typically allow for up to 36 percent)
• Income (allows for single or multi-income households)
• Existing debts (student loans, car loans, revolving accounts, other debts)
• Estimated taxes and insurance (annual taxes, insurance, and private mortgage insurance)

Once you’ve entered this information, click Show Results or Calculate.

Don’t like the results you see? There is no limit to how many times you can use the Home Affordability Calculator. Feel free to change the inputs that relate to the aspects of your mortgage that can fluctuate based on how you setup your mortgage with your lender.

For instance your loan term, loan amount, estimated down payment, and loan term. Each of these inputs can affect the amount of home you can afford and are dependent on your mortgage options you choose and are not determined by your current and more inflexible financial situation.

Talk with a Mortgage Advisor to see if you pre-qualify for a home loan. Contact a Mortgage Advisor by calling (866) 984-1240 or fill out our quick 1-minute form to have a Mortgage Advisor contact you.