The following is a home price affordability calculator. It estimates whether you can handle the payments on a new mortgage based upon current interest rates and your current debts and income.
You can adjust the settings for your down payment and the most the bank will allow as a debt to income ratio. Also, change your income to get an accurate result. We'll automatically fill in Freddie Mac's data for a 30 year mortgage (you can change the term and rate).
Home Price Affordability Calculator
How does the home affordability calculator work?
A synthetic measure of home price affordability is constructed based upon the inputs to the tool. By knowing what you make and what a bank will allow, we can see what price of house you might afford.
Bank Rate reports that 28% is a good debt to income ratio. We have populated the tool with that number. Feel free to change it if you know you can get a different qualification on your mortgage.
Note that the 'affordability' number presented is a measure of house affordability on a certain monthly payment.
This calculation happens to be how many people shop for homes, for better or worse. Your own situation is unique - although these inputs can determine what a bank may offer you it's ultimately your decision.
