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.
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 In the history of the real estate industry, there has been a single approach to working with a real estate agent. If you wanted to purchase a home, an agent showed you properties on behalf of the sellers of those homes. As a buyer, you were not represented by anyone other than yourself. Negotiation over price and terms were entirely your responsibility.
Now there is another way to handle buying property. With buyer agency, your real estate sales associate acts on your behalf in all negotiations. That agent is committed to being your advocate in finding and purchasing your next home, and at no cost to you.
In many cities across the United States, buyer agency is used in the majority of home purchases. With buyer agency, all fiduciary duties are owed to the buyer, not to the seller. The buyer has the freedom to discuss personal finances, negotiating strategies and the value of properties with their buyer agent. The buyer can ask for the opinion of the buyer agent regarding the condition of the property, the effect of improvements, the seller's motivation for selling and a variety of other information thar the seller's agent cannot provide.
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| Q |
Where was the great land boom (1919) in which investors paid up to $25,000 for lots not yet dredged up from the ocean?
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| A |
The great Florida land boom brought hundreds of investors to the state after Carl Fisher founded Miami Beach in 1919. |
 See More Real Estate Trivia > |
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Jolie Powell
CIPS, E-PRO, SRES, CBR, TRC
Jolie Powell Realty
406 Main Street
Port Jefferson, NY 11777
Mobile: 631-774-2528
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Jolie Powell has been a distinguished leader in the Real Estate industry since 1987. Prior to entering the world of Real Estate, Jolie had a successful career in advertising in Manhattan, New York. Always working to be at the top of her profession, Jolie has received her Certified International Property Specialist (CIPS) designation, Certified Buyer Representative (CBR) and Senior Real Estate Specialist (SRES) designations. Jolie also serves as Director of the Multiple Listing Service of Long Island and now elected as Zone Chairperson for the MLS.
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