7 min activity
Mortgage Affordability Calculator
You’re likely asking yourself, can I afford to buy a house? The answer to that question depends on your financial situation, income, and budget. It's essential to know if the monthly payments on a mortgage will fit within your budget. This calculator helps you determine that.
Start by entering how much you think your monthly mortgage payment will be. Next, enter your monthly income after taxes. Finally, enter your expenses; add and delete categories to make your list of expenses as accurate as possible. Take a look at the results!
There’s no one-size-fits-all answer as to when the best time to buy a home really is. There are several factors that everyone should consider before taking out a mortgage. This includes...
- Steady Income: Ensure you have a stable job providing a monthly income sufficient to cover the mortgage.
- Decent Credit Score: Remember, the higher the credit score, the lower the interest rate on any potential home. A higher credit score tells lenders that you're a reliable borrower.
- Debt-to-Income-Ratio (DTI): DTI is the percentage of your gross monthly income that goes toward paying off debts each month. Most lenders prefer a DTI lower than 43% before they’ll approve you for a mortgage. A lender’s calculations include any future monthly mortgage payment when calculating a potential borrower’s DTI.
- Emergency Fund: Don’t spend your whole life savings on the down payment of a mortgage. Have enough saved that there will be an additional sum of money for unexpected costs associated with home ownership including insurance, maintenance, repairs, utilities, etc.
- Long-Term Plans: Consider future needs, such as family growth and relocation.
- Personal Readiness: Make sure you feel emotionally and financially prepared for homeownership.
Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point.
Your next step is to speak with a qualified, licensed professional who can provide advice tailored
to your individual circumstances. Nothing in this article, nor in any associated resources, should be
construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure
that the information presented was correct as of the date the content was prepared, we are unable to
guarantee that it remains accurate today.
Neither Banzai nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Banzai and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Banzai and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.
Neither Banzai nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Banzai and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Banzai and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.
The above disclaimer pertains to Members First Credit Union and all Members First’s partners.
