Mortgage Affordability Calculator

How much mortgage can you afford?
Gross annual income: $ 
Down payment amount: $ 
Monthly debt: (credit payments, car payments, etc.) $   
Mortgage interest rate: %  
Annual property taxes: $ 
Annual homeowner insurance: $ 
Calculate Mortgage Payments  
Calculated Results
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House price: $  $ 
Actual loan amount: $  $ 
Monthly mortgage payment: $  $ 
Taxes & Home insurance: $  $ 
Total monthly payment: $  $ 
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Mortgage Calculator Assumptions: We use certain assumptions for the above calculations. The first is the loan term. The most common mortgage is a 30 year mortgage. All calculations are based upon that loan term.

We are also using figures for your principal to income and your debt to income ratios. For the principal (your mortgage payment without including your taxes and insurance) we are using a ratio of 28% - 33%. Next we will factor in your "debt to income ratio". For your debt to income ratios, we are using 34% - 38%. You may find that banks are getting more conservative and might want you to have a debt to income ratio at the lower end of the range.

We are also making assumptions for your property taxes and insurance coverage costs. It would be in your best interest to be sure these are in line with your area. For example, property taxes will be much higher in New York than in Florida, but the home insurance cost will be reversed.

For the mortgage interest rate estimate, we are using 6%. You can find the national average, or an estimated interest rate in your area, by checking with a site like Bankrate.com.

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