This calculator will help you to determine how much house you can afford and/or qualify for.

Begin by clicking in the first entry field and follow the instructions that appear in the Help box.

Gross annual income:

Your gross annual household income. This is the amount before taxes are deducted.

Monthly debt payments:

The total of your non-mortgage monthly debt payments. This would include car loans, student loans, credit card payments and so on.

Down payment:

The amount you have available to cover the mortgage down payment and closing costs.

Annual interest rate:

The annual interest rate you expect to pay on this mortgage. You can enter the rate either as a percentage (8.25) or as a decimal (.0825), whichever you prefer.')

Monthly Private Mortgage Insurance (PMI %):

The monthly Private Mortgage Insurance Percentage(PMI) you expect to pay (usually between .02% and .07% of loan amount). If you do not know what the percentage is, leave the field blank and the calculator will estimate your monthly PMI based on industry standards. If you DO know what the PMI percentage is, move the decimal place 1 digit to the right when entering (enter .04% simply as .4).

Monthly insurance:

The monthly insurance payment you expect to pay. As a rule of thumb, you can expect to pay .125% (home price X .00125) of the purchase price per month.

Annual property tax percentage(%):

The annual property tax percentage you expect to pay. As a rule of thumb, you can expect to pay 1.1% of the purchase price per year (Enter 1.1% as 1.1).

Length of the mortgage:

15 Years 20 Years 30 Years The length of the mortgage loan in number of years.

Maximum mortgage payment to income ratio (%):

Your maximum mortgage payment to income ratio. The default ratio is 28%, in which case your mortgage payment cannot exceed 28% of your monthly income.

Maximum debt payments to income ratio (%):

Your maximum mortgage payment plus debt payments to income ratio. The default ratio is 36%, in which case your mortgage payment plus your debt payments cannot exceed 36% of your monthly income.

Downpayment:

This is your original down payment amount.

Loan Amount:

This is the maximum mortgage you would qualify for based on your current entries.

Home Price:

This is home price you could afford (the total of your down payment and your maximum mortgage amount).

Monthly PMI payment:

This is your estimated monthly PMI payment amount.

Monthly insurance payment:

This is your estimated monthly insurance payment amount.

Monthly property tax payment:

This is your estimated monthly property tax payment amount.

Monthly principal & interest payment (P&I):

This is your estimated monthly principal and interest payment amount.

Total monthly cash outflow:

This is the estimated total of all monthly payments associated to size of the mortgage that the calculator determined you would qualify for.