This calculator will help you to determine how much house you can afford and/or qualify for.
Complete or change the entry fields in the "Input" column of all three sections. The calculator will automatically recalculate anytime you press the Tab key after making a change to an input field.
Mortgage Affordability Calculator Help
This simple mortgage calculator shows the principal and interest portion of a monthly mortgage payment. This calculator is fast and easy, thus ideal to use during the initial home buying stages. Getting a more precise loan estimate requires consideration of many factors such as your credit score and the type of loan program you intend to use.
This calculator does not include fees such as closing costs or origination. It also excludes things like HOA dues, property taxes, homeowners insurance and mortgage insurance. It's set up for a quick, thumbnail sketch to help folks see a reasonably close approximation of their monthly mortgage costs.
PITI Calculator Inputs
The mortgage amount is the principal of the loan. It's how much is borrowed to purchase or refinance a home. Principal can be the purchase price or the loan amount after applying the down payment.
Example: Purchase price minus down payment
- $800,000 purchase price
- $160,000 down payment (20% down)
- $640,000 mortgage amount (principal)
Loan interest is the cost of the principal. It's the portion of the monthly mortgage payment that is the charge for money loaned to you. It is expressed as a percentage rate. There are many factors that impact the interest rate for loan, such as:
- Market conditions
- Loan-to-value (LTV) ratio
- Borrower's credit score
- Type of mortgage program (FHA, VA, USDA, etc.)
The term is the length of time for paying back the mortgage. Terms have an impact on interest rates. The most popular loan terms are 30 years and 15 years. 30-year mortgages carry a slightly higher interest rate than 15-year mortgages.
Mortgage Calculator Outputs
The monthly payment is the amount of principal, interests, taxes, and insurance paid each month.