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Monthly Debt and Obligations Should Include:
Our Affordability calculator is not meant to replace the professional advice of your mortgage professional. Use it only as a first start estimate of the amount that you should be able to afford to pay for a property. Basically, it is a inverted mortgage calculator with some added tricks and features to help you be more realistic about how much you might be budget to spend when shopping for real estate. Many people use what they currently are paying for rent as and indication to what they might “afford” in a house payment. They miss the fact that the mortgage payment will also have to include property taxes, home insurance, and in some cases PMI (Private Mortgage Insurance). All of that can add up to more than you might be willing to spend. This hopefully can give our clients a quick estimate of how much home they can afford.
The affordability calculator will estimate the actual maximum amount of monthly payments that you can afford, including all additional payments into it (not on top of it), and calculates the property price that you might target. It factors in your monthly income, debt expenses, the current interest rate, down payment, estimated property taxes, insurance and PMI (Mortgage insurance will kick in at the normal limits of lending to value). Please note: your actual interest rate and amounts may be different! Please contact your assigned mortgage professional for a full affordability analysis.