Affordability Calculator

Calc Affordability

Yearly Income

$.00

Monthly Debt

$Mo

Monthly debts (credit cards, loans, etc.)

Down Payment

$.00

Interest

Loan Term

Years

Mortgage Amount

Purchase Budget

Taxes, Fees and Financial

Download this Calculation

If you are human, leave this field blank.

Clicking the submit button will allow you to download a pdf of your calculations

Notes

Front-End Ratio: 28%. This means your monthly housing expenses, including your mortgage payment, property taxes, homeowner’s insurance, and PMI (if applicable), should not exceed this percentage.

Back-End Ratio: 36%. This means your total monthly debt payments, including housing expenses and other debts like car loans and credit card payments, should not exceed this percentage. This is the amount used on this form to calculate affordability.

Down Payment

Enter the down payment you plan to contribute toward the purchase of your home. If your down payment is less than 20%, you may be required to pay mortgage insurance.

Frequently Asked Questions

Here are some of the most frequently asked questions about home affordability and why it matters.

How is Your Mortgage Interest Rate Determined

The foundation of home affordability hinges on your mortgage interest rate. When evaluating your ability to afford a home, it’s crucial to consider the estimated interest rate associated with your mortgage.

Your debt-to-income ratio.
Your track record of timely bill payments.
Verification of a stable income source.
The extent of your down payment, along with additional reserves for closing expenses and other costs associated with relocating to a new residence.

Once lenders ascertain your qualification for a mortgage, they proceed to determine the interest rate applicable to your loan. Your credit score plays a significant role in shaping the mortgage rate you’ll receive.

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

What is home affordability?

This question seeks to understand the concept of home affordability and how it is determined.

What is a debt-to-income ratio and CALCULATE IT

This question aims to clarify the significance of the debt-to-income ratio in the home affordability equation.

Please select a valid form

What role does my credit score play in determining my home affordability?

Understanding how credit scores affect the mortgage interest rate and, consequently, home affordability is a common concern.

How do lenders assess my eligibility for a mortgage?

People often want to know the criteria and process that lenders use to evaluate whether they qualify for a mortgage.

Are there any government programs or incentives to help with home affordability?

This question is relevant for individuals seeking information on available programs or assistance for homebuyers.

What is the ideal percentage of my income to allocate to housing costs?

Homebuyers may inquire about recommended guidelines for the portion of their income that should go towards housing expenses.

How can I improve my home affordability?

This question focuses on strategies and tips for making homeownership more affordable, such as improving credit scores or saving for a larger down payment.

What is the relationship between interest rates and monthly mortgage payments?

This question delves into how changes in interest rates can impact the monthly cost of a mortgage and, consequently, home affordability.

Should I consider adjustable-rate mortgages (ARMs) for greater affordability?

Prospective homebuyers may want to know about the advantages and disadvantages of adjustable-rate mortgages compared to fixed-rate mortgages in terms of affordability.

What are the common pitfalls to avoid when assessing home affordability?

This question addresses potential mistakes or misconceptions that individuals should be aware of when determining their home affordability.

Is it better to rent or buy a home in terms of affordability?

Some people may be unsure whether renting or buying is the more cost-effective option, and this question explores the factors to consider.

How do property taxes and insurance affect home affordability?

Homebuyers may inquire about the impact of property taxes and homeowners insurance on their overall housing costs.

Can I refinance my mortgage to improve affordability?

This question examines the possibility of refinancing as a strategy to make homeownership more affordable, especially when interest rates change.

Disclaimer

In order to receive a helpful estimate, it’s important that you input accurate information.

Results in no way indicate approval or financing of a mortgage loan. Contact a mortgage lender to understand your personalized financing options.

Helpful Need To Knows about Mortgages

Florida Mortgage Rates

30 Year Fixed

15 Year Fixed

5/1 ARM

View Trend

Source: Mortgage Rates

Busting Myths about No Money Down Mortgages: Get the Facts

by Staff Writer | January 11, 2024 | Buying, Learn About Financing | 0 Comments

Are you dreaming of owning a home, but the thought of a hefty down payment is giving you sleepless nights? Well, we've got some good news for you! A no-money-down mortgage, also known as 100% financing home loans or zero-down payment mortgages, is here to turn your...

Tips for Buying a Home in Miami in Your 30s

by Staff Writer | January 8, 2024 | Buying, Living | 0 Comments

Miami, the vibrant city known for its stunning beaches and dynamic culture, is increasingly becoming a popular choice for young families and individuals in their 30s looking to put down roots. But with a booming real estate market and diverse housing options, it can...

Top 10 DIY Home Improvements that Increase Value

by Staff Writer | June 29, 2024 | Home Improvement | 0 Comments

Are you curious about boosting your property's value without breaking the bank? Look no further! We've curated a collection of the top 10 do-it-yourself home improvements to skyrocket your property's value. This treasure trove of DIY projects will elevate your living...

How to Get a Home Improvement Loan with Bad Credit

by Staff Writer | July 9, 2024 | Finance, Home Improvement | 0 Comments

Got bad credit but big renovation dreams? We’ll show you how to get a home improvement loan with bad credit. We’ve got your back!

Sustainable and Eco-Friendly Homes

by Staff Writer | September 3, 2023 | Sustainable | 0 Comments

Sustainable and eco-friendly homes are becoming increasingly popular in Fort Lauderdale, as they align with the growing awareness of environmental concerns and a desire for energy efficiency. Here are some features and aspects commonly found in sustainable homes in...

The Art of Home Seller Etiquette: Don’t Miss These Tips!

by Staff Writer | July 10, 2024 | Selling | 0 Comments

Master the art of home seller etiquette with our expert guide. Learn the dos and dont’s so you can impress buyers.

Understanding the Costs Involved in Buying a Home: Simplified

by Staff Writer | January 11, 2024 | Buying | 0 Comments

Are you ready to take the plunge into homeownership? Buying your first home is an exciting milestone but also a big financial commitment. It's not just about the mortgage payments - various other costs are involved in buying a home. Here, we will explain the financial...

The Landmark Real Estate Agent Commission Rule Change

by Staff Writer | July 10, 2024 | Agents, Buying, Selling | 0 Comments

Real estate agent commission rule changes to enhance transparency and competition, impacting sellers, buyers, and agents.

What is Home Seller Financing? How It Can Benefit You

by Staff Writer | June 8, 2024 | Buying, Finance, Learn About Financing, Selling | 0 Comments

Have you ever wondered if there's an alternative to traditional bank mortgages when buying a house? It's a great question! And yes, there is! It's called "home seller financing." As always, Property.com is here to explain alternatives to help you achieve your real...

Loan for a Fixer-Upper or Home Improvements: The FHA 203(k)

by Staff Writer | June 23, 2024 | Finance, Home Improvement | 0 Comments

Do you need a loan to help you buy a fixer-upper or finance home improvements for your existing home? You can transform your home with ease. Discover the power of FHA 203(k) financing! A Government-Backed Loan for Home Improvements With the Federal Housing Authority...

Demystifying Mortgage Interest Rates

Naturally, a lower interest rate translates to a reduced monthly payment, contributing to enhanced affordability.

Keep in mind that mortgage terms and conditions can vary, so it’s crucial to work closely with a qualified mortgage professional to tailor your mortgage to your unique financial situation and homeownership goals

The frequently asked questions here, provide valuable information for individuals looking to understand and navigate the complexities of home affordability.