Estimate Your Buying Power

Contact An Agent
Lenders use two standard (but somewhat flexible) guidelines to determine how much of a monthly mortgage payment you can afford. The first guideline is that your household should spend no more than 28% of its gross monthly income (before taxes) on monthly housing expenses, including: mortgage principal and interest, hazard insurance, real estate taxes and private mortgage insurance, if applicable. However, some lenders will stretch that figure to 33%.The second guideline is that your monthly household expenses (as outlined above) plus other debt should not exceed 36 percent of your gross monthly income, although some lenders will stretch this to 38 to 40 percent.How Can I Estimate How Much of a Monthly Mortgage Payment I Can Afford?

First, calculate your monthly household income, including that of your co-borrower, if you have one. In addition to regular wages, don’t forget to include overtime, bonuses, commissions, dividends/interest, alimony/child support and any other income.

Estimate Your Debt to Determine What You Can Afford

Gather your credit card payments, car payments, student loans, alimony or child support should be included here; anything you make monthly payments for which a debt had been incurred, or to who you are listed as a co-borrower or co-signer.

Here are some tools to help you out.

Additional Tools:

HOW MUCH CAN I AFFORD?

LOAN CALCULATOR

MORTGAGE REPAYMENT CALCULATOR

LOAN PAYMENT GENERATOR

LOAN PAYMENT CALCULATOR w-EXTRA PAYMENTS

ADVANCED LOAN CALCULATOR

AMORTIZATION SCHEDULE CALCULATOR

AMORTIZATION SCHEDULE CALCULATOR – EQUAL PAYMENTS

EMI LOAN CALCULATOR

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