How Much House Can You Afford Calculator
Planning on buying a new home?...or perhaps thinking about refinancing your current mortgage? Tell us how much house you want - and then we'll show you how much monthly income is required to qualify for a mortgage.
How much House can you afford?
How to use the calculator
Simply enter the requested property and mortgage information into the boxes for each of the three screens, including Home Value, Down Payment, Interest Rate, Length of Loan, Tax, and Insurance information. Click the Calculate button on the final screen to display the the results of your query.
You'll notice in the second form (Step 2) there are two information fields which you may be unfamiliar with. The front ratio and back ratio are debt to income ratio's that lenders typically use in their loan decision process. The front ratio is a percentage of your gross income that you spend on all housing related expenses, including property taxes and insurance. Back ratio is a percentage of your gross income that you can spend on your housing expenses plus cost of shelter: food, clothes, gas, etc. The values we use in the calculator are conservative figures - you shouldn't feel the need to change these numbers unless you believe your lender may allow for more agressive ratio's.