Welcome > Resources > Mortgage Calculators > How Much Can You Afford? ...

How Much Can You Afford?

The first step in buying a house is determining your budget. This calculator steps you through the process of finding out how much you can borrow. Fill in the entry fields and click on the "View Report" button to see a complete amortization schedule of your mortgage payments.

Definitions

Annual income

Your annual income before taxes. For married couples this is your total combined annual income before taxes.

Purchase price

The price of the home you wish to purchase. This is the actual price you'll pay, not including any closing costs.

Total monthly payment

Total monthly payment that you can qualify for. This is the total of principal, interest, taxes and insurance paid each month. Often called PITI.

Cash on hand

Cash you have for the down payment and all closing costs.

Interest rate

The current annual interest rate you can receive on your mortgage.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Property tax rate

Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.

Home insurance rate

Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.

Monthly car payment(s)

Total monthly payment for your car loan(s).

Credit card payments

Total monthly minimum payments for your credit cards.

Other loan payments

Any other installment loan payments, such as student loans or unsecured loans.

Total closing costs

Total upfront costs to close your loan. This is the total of your loan origination fee, points paid and other closing costs.

Loan origination rate

The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.

Number of points paid

The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.

Other closing costs

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.

Monthly PMI payment

Monthly cost of Principal Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year. Monthly PMI is calculated by multiplying your starting loan balance by this percent and dividing by 12. When the equity in your home exceeds the percentage required for PMI, your PMI payment drops to zero. Please note that this is only an estimate of your actual PMI. The amount you may be required to pay may be higher or lower than our estimate.

Monthly PI payment

Monthly principal and interest payment.

Total for down payment

Total funds remaining, after closing costs, for down payment.

Limit down payment

Limit your down payment to percentage required to eliminate the need for PMI payments. Even if you have more cash on hand than required for closing costs checking this box will limit your down payment to the minimum amount required to forego PMI.

Show schedule by month

Display the payment schedule by month when you press the "View Report" button.

Show schedule by year

Display the payment schedule by year when you press the "View Report" button.

Total annual income debt percentage

Not shown. This is the percentage of your annual income your financial institution allows you to use for debt installment payments. This includes car payments, credit card payments, other loan payments and your "Principal, Interest, Tax and Insurance" payment for your home. The default rate is 36%.

PITI annual income percentage

Not shown. This is the percentage of your annual income your financial institution allows you to use for your "Principal, Interest, Tax and Insurance" payment for your home. The default rate is 28%.

Qualify amount

Shown as "Total monthly payment." This is the total amount you qualify for per month. This amount is the total of "Principal, Interest, Tax and Insurance" for your home.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

"A model of how the Internet can facilitate the process of deciding where to send your children to school" - America's Best School Profiles by The Heritage Foundation Pennsylvania Public, Private and Charter Schools: Compare them using these top-rated, comprehensive reports.   Schools in Yardley, Newtown and Upper Makefield

Investment Real Estate >Rental Property When you own an investment property, one of your goals will be to get the highest monthly rental with the lowest vacancy rate. How can you accomplish this? It pays to keep your property in good condition while you are trying to rent it, as well as after the new tenants move in. You obviously want the property to look its best when it is being shown. If you work to keep it that way, your tenants are more likely to feel motivated to stay in the home. When something needs to be repaired, be sure the tenants know whom to call to get the job done. Arrange for periodic inspections of the property to check for leaking roofs or pipes, defective wiring or malfunctioning appliances. If you are an absentee landlord, it makes sense to hire property management professionals to keep a close eye on your investment for you. See All Tips In The "Investment Real Estate" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  What U.S. state is home to the world's richest woman? A  Alice Walton, daughter of WalMart's founder and heiress to $16.5 billion, lives on a ranch in the state of Texas. See More Real Estate Trivia >

Jane Johnson Prudential Fox & Roach Realtors 1010 Stony Hill Road Yardley, PA. 19067 Phone: (215) 504-7500 X7557 Fax: (215) 504-1794 Email: janejohnson@NUMBER1EXPERT.com Working hard to help homebuyers and homesellers realize their dream is my goal. Loving my job is KEY to providing the top-notch service you expect, and the highest net profit YOU DESERVE! Your real estate transaction represents your most valued financial asset. Why not let my Value Creation Specialist skills work towards your home buying and selling needs? Prudential also leads the industry in advertising and marketing with more print, photo, and Internet advertising than any other agency. At PaHomeCatcher.com, featured listings are promoted on a network of the most visited home search web sites such as NUMBER1EXPERT.com ,123Movers.com, RealEstateABC.com and many more. I also have an "Enhanced Listing Feature" option through Realtor.com so that my listings are guaranteed to get unlimited description space, additional photos, and scrolling text headlines! Being an Accredited Home Staging Realtor also provides you with a valuable service. Staged homes help homeowners prepare their homes for sale to realize the highest price in the shortest amount of time possible! Did you know that homes that are professionally staged get 7 to 10% more than asking price with an average listing period of 10 to 14 days? As a Luxury Home Specialist, I provide an excellent array of Fine Home Marketing options as well as knowing the Luxury Home market in Bucks County. Fine Homes will continually be featured on PaHomeCatcher for the Luxury Home buyer. So be it a historical home, a waterfront property, a town home, a rancher, a classic colonial, a contemporary, or an investment property, get EXCEPTIONAL services in Beautiful Bucks County to catch your next purchase or sale! Click here for more Luxury Home information. Click here to learn more about Home Staging www.PAHomeCatcher.com is brought to you by Jane Johnson NUMBER1EXPERT™ in real estate for Yardley, Newtown and Upper Makefield, Pennsylvania Read Jane Johnson's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

NUMBER1EXPERT™
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.