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Mortgage Affordability Calculator

Mortgage Affordability

The very first step you should take when shopping for a mortgage is deciding how much you can afford to pay. This will save you time and frustration. Important factors to take into account are the borrowed amount, interest rate, points, term, down payment, the amount of cash you can allocate to the mortgage, your existing indebtedness and the ratio of housing expense to your income. The following affordability calculator can help you in estimating what mortgage is best for you:

Mortgage Affordability Calculator

Please fill in the fields of the left table, then click on "COMPUTE".
Do not use $ or % signs or commas in these fields. Only numbers and an optional decimal point.

User Input
  Purchase Price
  Down Payment as a % of Price
  Points
  Loan Term
  Interest Rate
  Closing Costs as a % of Price
  Annual Property Taxes and Home Insurance as a % of Home Value
  Housing Expense as % of Gross   Income before taxes
  Total Housing Expense as % of
  Gross Income before taxes
Results
  Loan Amount
  Down Payment
  Points
  Closing Costs
  Mortgage Payment/month
  Taxes and Insurance/month
  Mortgage Insurance/month
  Total Housing Expenses/month
  Total Cash Required
  Minimum Income Required /month
  Other Debt Payments Max /month

The left table has been filled with values that are about average, but you can play with it, change these values to what best fits your case and have a good approximation of what kind mortgage you can afford. Your lender will use a similar calculation to determine if you qualify for the mortgage you want. For an explanation of the terms used in the calculator refer to "What a Mortgage Is".

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