Mortgage Qualification Calculator
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A title for these calculator
results that will help you identify it if you have printed out several
versions of the calculator.
Normal monthly income, including taxes, but not including alimony, child support, etc.
Other monthly income such as alimony or child support.
Total amount of 'Monthly Income' entered.
The total amount you spend each month for all car payments.
The total amount you spend each month for all credit card payments.
The total amount you spend each month for all loans (not to include mortgage).
Total of all other monthly obligations you have. (Examples are alimony, child support, legal judgment.)
Total amount of 'Monthly Expenses' entered.
The amount of money you plan to put as a down payment on your property.
The annual percentage rate you will pay for this loan.
How long you will pay on this loan. Also choose whether 'Length of Loan' is years or months.
The percentage of your home's value that your local government charges annually for property taxes.
The likely amount you will
pay for homeowner's insurance on a property valued around the price
shown as 'Qualifying Home Value'. Also choose whether this is the
amount you will pay per year or month.
The likely amount you will pay
for private mortgage insurance (PMI) on a loan around the amount shown
as 'Likely Loan Amount'. (You will probably pay private mortgage
insurance if you borrow at least 80% of your property's value.) Also
choose whether this is the amount you will pay per year or month.
Any Homeowner's Association
dues you will owe as part of your property's Covenants and Restrictions
(CCRs). Also choose whether this is the amount you will pay per year or
month.
Any other escrow charges (not
property taxes, homeowner's insurance, private mortgage insurance
(PMI), or association dues since those are entered individually) that
will be paid with your monthly mortgage. (If you're borrowing more that
80% of the home's value you'll likely pay PMI.) One example might be
Special Service District (SSD) charges. Also choose whether this is the
amount you will pay per year or month.
The portion of 'Likely Max
Monthly Mortgage' (shown in the next section) that represents your
monthly principal & interest payment.
The portion of 'Likely Max Monthly Mortgage' (shown in the next section) that represents your monthly property tax payment.
The portion of 'Likely
Max Monthly Mortgage' (shown in the next section) that represents your
monthly homeowner's insurance payment. If 'Homeowner's Insurance'
expense (in the section above) is per 'Year', this will be calculated
as 'Homeowner's Insurance' / 12 to get the monthly amount.
The portion of 'Likely Max
Monthly Mortgage' (shown in the next section) that represents your
monthly private mortgage insurance (PMI) payment. If 'Private Mortgage
Insurance' expense (in the section above) is per 'Year', this will be
calculated as 'Private Mortgage Insurance' / 12 to get the monthly
amount.
The portion of 'Likely
Max Monthly Mortgage' (shown in the next section) that represents your
monthly homeowner's association dues payment. If 'Association Dues'
expense (in the section above) is per Year, this will be calculated as
'Association Dues' / 12 to get the monthly amount.
The portion of 'Likely Max
Monthly Mortgage' (shown in the next section) that represents your
other monthly escrow payment. If 'Other Escrow' expense (in the section
above) is per 'Year', this will be calculated as 'Other Escrow' / 12 to
get the monthly amount.
Based on your monthly expenses,
down payment, anticipated interest rate and mortgage escrow expenses,
your monthly mortgage payment should be at most this amount.
The percentage of your monthly income that goes to pay for housing.
The percentage of your monthly income that goes to pay all your debt (including housing).
A mortgage lender will
likely finance about this amount for you. This amount is calculated on
either your 'Housing Debt Ratio' reaching the maximum 28% or your
'Total Debt Ratio' reaching the maximum 36%.
You should be looking to buy a
home or property valued at this or less. This amount is simply the
'Likely Loan Amount' + 'Down Payment' amounts.
Gross Monthly Salary/Income + Other Monthly Income
$5,000.00 = $5,000.00 + $0.00
Car Payments + Credit Card Payments + Other Loan Payments + Other Monthly Payments
$700.00 = $350.00 + $200.00 + $150.00 + $0.00
Total Monthly Income * 36% -
Total Monthly Expenses - (Property Taxes + Homeowner's Insurance +
Private Mortgage Insurance + Association Dues + Other Escrow)
$970.20 = $5,000.00 * 36% - $700.00 - ($84.80 + $25.00 + $0.00 + $0.00 + $20.00)
(Loan Amount + Down Payment) * Property Tax Rate / 12
$84.80 = ($162,109.13 + $7,500.00) * 0.006000 / 12
Homeowner's Insurance / 12
$25.00 = $300.00 / 12
Private Mortgage Insurance / 12
$0.00 = $0.00 / 12
Association Dues / 12
$0.00 = $0.00 / 12
Other Escrow
$20.00 = $20.00
Principal & Interest + Property Taxes + Homeowner's Insurance + Private Mortgage Insurance + Association Dues + Other Escrow
$1,100.00 = $970.20 + $84.80 + $25.00 + $0.00 + $0.00 + $20.00
Monthly Rent/Mortgage / Total Monthly Income
22.00% = $1,100.00 / ($5,000.00 + $0.00)
(Monthly Mortgage + Total Monthly Expenses) / Total Monthly Income
36.00% = ($1,100.00 + $350.00 + $200.00 + $150.00 + $0.00) / ($5,000.00 + $0.00)
Either 'Housing Debt Ratio' or
'Total Debt Ratio' will be at its maximum all the time. 'Total Monthly
Housing Expenses' increases when 'Total Monthly Income' is increased or 'Total Monthly Expenses' is decreased.
Principal & Interest * (((1 + -Rate / 12) ^ Months) - 1) / (-Rate / 12)
$162,109.13 = $970.20 * (((1 + -0.0600 / 12) ^ 360) - 1) / (-0.0600 / 12)
Loan Amount + Down Payment
$169,609.13 = $162,109.13 + $7,500.00
