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5a

Housing Affordability Calculator

Who This Calculator is For: Borrowers trying to figure out
whether they can afford a given-priced house.

What This Calculator Does:This calculator displays the minimum cash
and income required, and the maximum debt service allowed,
to purchase a house of some specified price.

Enter the Following Information:
  Purchase Price of Desired House  (e.g. 235000)
  Down Payment as a Percent of Price
  Loan Term
  Interest Rate  
  Points 
  Mortgage Insurance (Monthly Premium Plan)
  Closing Costs (Other than Points) as a Percent of Sale Price  
  Annual Property Taxes & Insurance as a Percentage of Home Value  
   Maximum Ratio of Monthly Housing Expense to Income
   Maximum Ratio of Total Housing Expense to Income
Total Cash
Required		 Minimum Monthly Income Required
(before taxes and expenses)		 Maximum Debt
Service Permitted

DO NOT USE DOLLAR SIGNS ($), COMMAS (,) PLUS OR MINUS SIGNS ( + / - )
OR PERCENTAGE SIGNS (%) IN ANY INPUT BOXES


Read What the Mortgage Professor Says About
Measuring Housing Affordability

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Monthly housing expense includes principal and interest, taxes, and hazard insurance. Total housing expense includes monthly housing expense plus debt service. The number that appears is about the smallest you can expect to find without paying a premium interest rate. However, you will have to pay for mortgage insurance if the down payment is less than 20%. Given the down payment and term you have selected, the numbers shown are typical annual premium rates for "monthly premium plans" that involve no upfront premium. You can override these numbers if you are quoted different rates for monthly premium plans.