What Size Loan Can I Qualify For?

Affordability Calculator

How much you can borrow from a lender? Use this calculator to calculate the amount you can afford from the lender's point of view.

Loan Information

Down Payment
Interest Rate
%
Length
years
Estimated Front Ratio
%
Estimated Back Ratio
%

Income Information

Debt Payment Information

Income 1
$
Auto Loans
$
Income 2
$
Student Loans
$
Income 3
$
Installment
$
Income 4
$
Revolving accts
$
Income 5
$
Other Debt
$

Taxes And Insurance Information

Annual Taxes
Annual Insurance
Annual Private Mortgage Insurance (PMI)

Monthly Principal & Interests $1,460.00
Monthly Real Estate Taxes $250.00
Monthly Insurance $125.00
Monthly PMI $192.65
Total Monthly Payments $2,027.65
Monthly Income $8,000.00
Monthly Debt Payments $910.00
Actual Front Ratio 25 %
Actual Back Ratio 37 %
Amount $271,900.00
Down Payment $30,200.00
Home Value $302,100.00

Before you start looking for a new home, you need to have an idea of how much you can afford to pay for a home. To find this out, you will need to take a closer look at your total monthly household income as well as the debts and regular monthly payments you are already making. In addition, you will need to consider how much money you can put in down payment, the loan interest rate, and the length of the loan. You will also need to have an idea of how much the taxes will be, as well as the insurance and PMI costs.

Estimated front and back ratios helps you to limit your housing and necessary living spending. Front ratio is a percentage of your gross income that you can spend on all housing related expenses, including property taxes and insurance. Back ratio is a percentage of your gross income that you can spend on your housing expenses plus recurring debt such as installment loans, revolving / CC bills, child support and or alimony etc.

Front / back ratios with values of 31/43 / 40/50 are considered conservative these days, values bigger than 45 / 52 are considered aggressive and are not recommended for use.

Using all of this information, you can determine how much you might afford to pay for your mortgage. If you are interested in making a $30,200.00 down payment and hope to get a 30 year loan with a 5.000% interest rate, you can afford to purchase a home that costs $302,100.00 if your gross household monthly income is $8,000.00 and your total monthly payments on your other bills is no more than $910.00.

If you purchase a home under these conditions, you can expect to pay $2,027.65 per month toward your mortgage. $1,460.00 of this will be toward the actual loan, while $250.00 will be toward taxes and $125.00 will be toward insurance.

Disclaimers: The information provided by these calculators is for illustrative purposes only. There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. The default figures shown are hypothetical and may not be applicable to your individual situation. The calculated results are also intended for illustrative purposes only and accuracy is not guaranteed. There is not tax or financial advice given. Default and calculated tax data are for illustrative purposes only. Be sure to consult a tax or financial professional regarding your specific situation and before relying on the results.

Any hypothetical monthly mortgage payments reflect hypothetical Principal & Interest amounts rounded to the nearest dollar amount and may not include insurance, taxes, or other possible fees. These figures and rates are for educational purposes only and do not reflect an official mortgage loan offer.

We have many other Mortgage Calculators for you to use.

Make sure you register to receive my Free Homebuying Guide and Insider Mortgage Reports, browse my Resources section, fill-out a FREE No-Obligation Secure Online Loan Application, or call me in my Roswell, Georgia office at 404-933-9089. I am here to help you with all your mortgage needs.

Sheryl took great care of us while we were purchasing our first home. She was always ready and able to answer all of our questions and kept us informed throught the entire process. We are so thankful that we had someone like her in our corner.

melissamblack45 on 2020-04-01

Sheryl was so helpful in every way! This was my first time buying a house and I had a million questions! She was so nice, professional and helpful! I would definitely recommend her to anyone!

erincurrul on 2019-08-08

I had a wonderful experience with Sheryl Nolan. She is great! Very quick the respond to question and always kept me in the loop of what was going on and how things were progressing every step of the way. Would recommend her to anyone and would use her again in the future if I need another home loan.

zuser20160108105828297 on 2018-07-01

My real estate agent referred me to Sheryl for a new home loan. Working with Sheryl made the entire loan experience so easy that I was amazed it all happened so fast. Sheryl is VERY detailed oriented and worked tireless to ensure everything was done correctly and so very professionally. I had very little experience in getting a home loan but Sheryl held me hand throughout the entire experience. She got me the best rate and I learned a lot from Sheryl. I would recommend her to everyone as she made my loan an enjoyable experience! She is honest and has a level of integrity that showed through with everything she did for me. Please use her as you won't be sorry!

tsheff0106 on 2018-07-01

Where do I begin! Sheryl worked SO HARD on our loan. We were not a normal mortgage and Sheryl took on the challenge and got us into our dream home. She was spot on getting back to my emails and calls right away. She even followed up after normal business hours just to make sure she checked in with me! I had no doubts in Sheryl's ability and will happily recommend her to all my friends and family!

joshhastydc on 2017-12-01

We truly enjoyed having Sheryl as our lender. We could ask her any questions and she was able to answer with a detailed, as well as, simplified response for us to understand...remember we were first time home buyers. She made everything very easy to understand and paperwork easy to access. She was available any time for questions, which is good because both my husband and I work full-time jobs. Needless to say she is the go-to lender. She gives real feedback and advise, overall great lender.

zuser20151106080611806 on 2017-08-01

Sheryl was an absolute joy to work with throughout the entire loan process. She was very responsive to all my questions prior to, and after I officially became a client. She is very knowledgeable about home loan products, and was able to recommend the best options for me based on my specific needs. Sheryl is a very effective communicator, and is really good at making complex loan processes/terminology easy to understand. I highly recommend her services!!

user1130198217 on 2017-11-01

Sheryl was a dream to work with. From day 1 she was in our corner fighting to find the right loan situation for us as new home buyers. She was always available to answer the multitude of questions that we had, calm any fears or soothe any anxiety. We were absolutely blessed to have her on our team during the home buying process.

user99367972 on 2017-09-01

Sheryl was fantastic to work with for buying our new home. She was always available to answer my questions and was a great partner throughout the whole process. I would definitely use Sheryl again for our next house.

AnnUitts Newlin on 2017-05-01

Sheryl was Amazing , it took the personal approach in assisting me with my home mortgage. She was very in detail , patient, understanding worked fast to get things done. Very efficient and personable !!! I would highly recommend Sheryl and use her again again In the future!!!! Sheryl was a GOD send

zuser20140513152644210 on 2017-07-01

See All Our Reviews Here

This is a 1x1 transparent image tracking traffic