Use this calculator to get a general idea of how much mortgage you can afford.
Before you begin house hunting, it’s important to understand how much home you can comfortably afford. This calculator estimates the mortgage amount that may fit within your financial situation based on income, debt, and estimated housing costs. Please note that we have many programs that will help you maximize your income and savings and get the home of your dreams.
How It Works
Follow these steps to estimate your mortgage affordability:
- Enter your desired mortgage amount: This is the loan amount you want to evaluate
- Enter the mortgage term: Most buyers choose 30 years, but other options may be available
- Enter the estimated interest rate: Use a general estimate based on current market rates
- Enter your annual property taxes and homeowner’s insurance: These are common monthly costs included in mortgage payments
- Enter your other monthly debts and include payments such as:
- Car loans
- Credit cards
- Student loans
- Personal loans
Your Mortgage Affordability Results
- Monthly principal and interest payment
- Total monthly obligations
- Estimated borrower income needed
Mortgage lenders generally follow industry guidelines that suggest your total monthly debt obligations should not exceed about 45% of your gross monthly income.
Keep in mind that every borrower’s financial situation is different, and there may be programs available that allow you to qualify for more favorable terms.
Want to Know Exactly What You Can Afford?
Online calculators provide estimates, but Educated Mortgage can give you a personalized mortgage approval based on your full financial picture.
Contact Educated Mortgage today to speak with a loan expert and get pre-qualified for your home purchase.