It’s all very well and good to know how much a mortgage payment would be, given the loan amount, interest rate, and length of the loan. That’s what a simple mortgage calculator will tell you.
A more relevant question for many home buyers is, how much home can I afford? Or, in many cases, how much of a loan can I get approved for from a bank?
That’s what this home affordability question is meant to help you with. To use this calculator, you’ll need to specify how much your annual income is. Your annual income is a figure that needs to be documented on your tax return – if you don’t declare it, you don’t earn it for the purposes of mortgage qualification. You’ll also need to specify the down payment that you have, and the mortgage interest rate (scroll down a bit for today’s current mortgage interest rates, and plug in the number you see there).
Lastly, you’ll need to enter your current monthly debt payments. Add up all your credit card payments, student loans, car payments, and whatever else. Lenders will take this into consideration when qualifying you for a mortgage.
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