Home affordability calculator: How much mortgage can I borrow?
Mortgage how much can I borrow calculator helps you determine the maximum loan amount that you can borrow. Also, you'll be able to calculate the maximum monthly mortgage payment. Only you have to put your monthly income, debt payments, annual housing expenses and the mortgage loan period and the term in order to find out the amount that you can afford to borrow.
How much mortgage can I borrow - Affordability factors
"Mortgage calculators how much can I borrow" help you figure out the maximum amount that you can borrow. However, the maximum borrowing amount depends upon the affordability factors that lenders look into. Such factors are:
A real life scenario - How much can I borrow for a mortgage?
For example, suppose your total monthly income from all sources is $20,000. Let, your total annual housing expenses and other monthly debts be $500 and $200 respectively. Now, say the mortgage rate is 4% and you want to take out a mortgage loan with a term period of 15 years.
Then the maximum loan amount that you can borrow will be $751398 and your monthly mortgage payment will be $5558.