By using Andes Mortgage’s Home Affordability Calculator, you will be able to accurately estimate how much home and mortgage you can qualify for.
Just type your annual salary, and the other variables to calculate your affordability. This calculator will give you a complete breakdown of maximum mortgage payments and total house payments that you can qualify for.
Andes Mortgage allows you to make different changes to this calculator so that you can accurately estimate your purchase power.
All the fields on this mortgage calculator are customizable, and you can either use the sliders or the fields to input number values. As you move along, our mortgage calculator will adjust the maximum mortgage payments, house payments and finally, the maximum loan amount you qualify.
When using this calculator, it’s important that you take a look at the “Principal and Interest” and the “Total Monthly Payment”. It’s imperative to note that Principal and Interest is only the loan payment, in other words, this is what you will for the financing only.
The term “principal” stands for the amount you borrow and you pay back. Every month, the loan amount goes down by the portion of the payment that goes towards it. Meanwhile, “interest” is the cost of the financing. It’s basically interest that the lender charges you for lending you money.
The principal and interest payment does not include the other items that make up the total house payment.
This is why on our mortgage calculator you see the Total Monthly Payment which includes property taxes, homeowners insurance and PMI if applicable.
Continue using this mortgage calculator to play around with different numbers and get a better understanding of how different factors can affect how much home you can afford.
This is your yearly gross income. Do not deduct withholdings such as taxes, medicare or social security. Just put your gross in this field. Most lenders use your gross salary to qualify you.
These are your monthly liabilities that show up on your credit report.
For example, think of credit cards, student loan, car loan payments. Mortgage lenders analyze your monthly payments to calculate your debt-to-income ratio.
If your monthly payments are $45 for a credit card, $300 for a car note and $200 for a student loan, you would put $545 as your monthly debt.
Do not add any payments that are not reported on your credit report such as utilities, insurance, child care, etc.
Your monthly debt divided by your gross monthly income is your debt-to-income ratio.
The home price is the amount you’re looking to pay for the home—it’s basically the sticker price.
While the home price sets the stage, it’s not just about how much you’re willing to fork out from your piggy bank. Factors like the local housing market trends, the home’s condition, and even negotiations can sway this number.
The interest rate is a key factor in determining your mortgage payments. It represents the annual percentage of the loan amount that you will be charged for borrowing the money. The higher the interest rate, the more you will have to pay back over time.
Interest rates are affected by many factors but most importantly, credit score, loan-to-value, type of loan and current market conditions.
We provide up-to-date national average interest rates and you can access them here.
Find an interest rate that applies to you and use that rate on our mortgage calculator. It’s OK if it’s not 100% the same, an estimate works just fine.
The loan term refers to the length of time that you will have to pay back the loan. Most mortgage loans have a 30-year term, meaning you’ll make payments for 30 years until the principal balance is fully paid off. This is the most popular loan option for most homebuyers and homeowners.
However, there are also shorter terms available such as 20 and 15 years that can result in lower interest rates but higher monthly payments.
If you are looking for a standard 30-year mortgage or want to have the lowest monthly payment, make sure the loan term slider is set at 30 years.
Property taxes are another important factor to consider when determining your total monthly payments. These are taxes that homeowners pay based on the assessed value of their property, and they are typically paid annually or semi-annually.
When using our mortgage calculator, be sure to input the estimated property tax amount for the home you’re considering purchasing.
There are several ways to estimate property taxes that you can use on our mortgage calculator.
The first one is by assuming 1.25% of the purchase price. For example, if you are buying a $300,000, the property taxes should come out to roughly $3,750/year.
Another way is to find the listing for the property with your real estate agent, or a listing aggregator like Zillow. If you are buying a home in Atlanta, you can navigate on our partner’s website at www.atlantahomeprices.com to see listings in the city and nearby counties.
Homeowners insurance helps protect your investment in the event of unforeseen damages or losses. The cost of homeowners insurance can vary depending on location, property type, and coverage options. Normally, the range for homeowners insurance is anywhere between $1,500 – $3,000 annually or 0.55% of the purchase price.
For example, if you are buying a $500,000 home, you can estimate your home insurance to being around $2,750 (0.0055 * $500,000).
For a more accurate reading, you’ll want to get a quote from an insurance agent for a specific property that you’re looking.
Here at Andes Mortgage, we’re dedicated to helping you find the best mortgage options for your unique financial situation. With our easy-to-use calculator and personalized services, we make home buying a breeze.
So whether you’re a first-time homebuyer or looking to refinance, trust Andes Mortgage to guide you every step of the way. Keep in mind that while our calculator is a helpful tool, it’s always best to consult with a mortgage professional for personalized advice and information. Let us help you achieve your dream of homeownership today!
Call us today at 770-740-4050 or send us a quick inquiry by clicking this link.
Andes Mortgage, LLC. NMLS ID# 2187991
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| Not available in all states. Offer of credit is subject to credit approval. Not an offer of credit. Equal Housing Lender
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