Home Affordability Calculator
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Estimated Breakdown:
(Actual amounts may vary, this is only an estimate. See Disclaimer.)
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How to use Monvvo home affordability calculator
- Enter your annual income to help determine your housing budget based on your financial capacity.
- Add your monthly debt payments, including car loans, credit card bills, and other obligations.
- Input your planned down payment amount, which will reduce the loan amount needed.
- Choose your desired loan term (10, 15, 20, or 30 years) to see affordability options over time.
- Select your credit score range, as it influences the estimated interest rate for your loan.
- Click Update to see your results, including maximum home price, loan amount, and monthly cost estimates.
Home Affordability Terms
Annual Income
Your total income earned in a year before taxes and deductions. This figure is used to estimate how much of your monthly budget can go toward housing costs. Lenders typically recommend spending no more than 28% of your gross monthly income on housing payments.
Monthly Debt
This includes recurring financial obligations such as car loans, student loans, credit card payments, and other fixed debts. Monthly debt plays a significant role in determining your debt-to-income (DTI) ratio, which lenders use to evaluate your ability to manage additional mortgage payments.
Down Payment
The upfront amount you contribute toward purchasing your home, usually expressed as a percentage of the home price. A higher down payment reduces the loan amount you need and may eliminate the need for private mortgage insurance (PMI). Common down payments range from 3% to 20% of the home price.
Loan Term
The time period over which you agree to repay the mortgage, typically ranging from 10 to 30 years. A shorter loan term usually comes with higher monthly payments but lower total interest costs, while a longer term offers lower monthly payments with higher overall interest.
Closing Costs
Fees and expenses incurred during the home-buying process, typically 2-5% of the purchase price.