How much can I afford? What will be my monthly payment? These are the typical questions we hear from buyers purchasing a new home. With Prime 1 Estates Home Affordability Calculator, it will help you determine what you can afford based on your annual income, down payment, monthly debt, loan term, mortgage APR, property taxes, and insurance. In this calculator, we followed general lender guideline to calculate what you can afford.
Home Affordability Calculator
Although we did not include your credit score in our calculation, it is an important factor to qualify for a mortgage. Usually the higher the credit score, the lower the interest rate.
- Your monthly payment includes interest paid, principal, property taxes and insurance.
The affordability calculator is intended for planning and educational purposes only. The assumptions made here and the output of the calculator do not constitute a loan offer or solicitation, or financial or legal advice. Please talk to a loan professional, lender, or your personal banker to estimate how much you can afford to pay for a home.
Total amount of income earned annually. Gross annual income represents the amount of money a person earns in one year from all sources before taxes. Include all income before taxes, including base salary, commissions, bonuses, overtime, tips, rental income, investment income, alimony, child support, etc.
Amount of money you will put down of the purchase price. Typically homebuyers pay 20% down payment of the total value of the home, but there are mortgage loans which requires with little as 3.5% down payment.
Add up all your monthly dept. Include your car loans, student loans, minimum monthly payments on your credit cards, insurance, utilities, subscriptions, groceries, etc.
Do Not Include debt that will become absolute at the time of the purchase (example: rent or current mortgage).
This is a monetary loan that is repaid in regular payments over a set period of time. Loan term usually last between 15 and 30 years. Longer the loan term higher interest rate.
This is the interest rate for the loan you will receive.
Refer to Market Insight: Mortgage Rates to view current and historical interest rates.
A property tax is a levy on the value of a property. Homeowners pay property tax monthly (part of the monthly loan payment) or twice a year.
Typically known as hazards insurance, most lenders requires to protect your property from damages such as: fire, burglary, storm, earthquake, personal liability coverage (to protect the homeowner from lawsuits against injuries that occur on the property) and more.