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 Missouri Public, Private and Charter Schools: Compare them using these top-rated, comprehensive reports.   Schools in St Louis City, South County and Affton

Curb Appeal >An Attractive Approach First impressions count! Do you remember your first impressions of your present home? What made you want to buy it? The features or amenities that first attracted you are probably the same ones that will sell your home. Prospective buyers' first impression of your home is the feeling they get when approaching your property. Each home has its own unique features--trees and shrubs which soften structural lines, unusual architectural features, such as bay windows, or a beautifully landscaped entrance. Whether your home is modern or elegant traditional, the approach to your home makes a statement. Since most buyers are looking for a home that has both charm and class, it pays to keep your grounds well-maintained and attractive. If the exterior appearance of your home and yard is pleasing, buyers will want to see the interior. See All Tips In The "Curb Appeal" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  What might happen to the Empire State Building in extreme weather? A  The Empire State Building can sway several feet to either side when buffeted by a severe windstorm or rainstorm. See More Real Estate Trivia >

Jim and Kate Potterfield RE/MAX Results 6407 Hampton Ave St. Louis, MO 63109 Phone: 314-504-3212 Fax: 314-352-7655 Office: 314-352-7770 Email: jimpotterfield@NUMBER1EXPERT.com Email: jpotterfield@hotmail.com Hi! We're Jim & Kate Potterfield and we are eager to help you achieve your Real Estate goals. We want you to be happy with our service, We have 3000+ happy customers-we want you to be one too! Our office manager, Tammy Sessler will ensure that your transaction is handled to your satisfaction. Our motto is" Experience... the difference! www.jimpotterfield.com is brought to you by Jim and Kate Potterfied NUMBER1EXPERT™ in real estate for St Louis City, South County and Affton, Missouri, first time home buyers, single family homes Read Jim and Kate Potterfield'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.