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Mortgage Affordability Calculator

This calculator is used to determine how much of a mortgage you can afford. It  based on your gross income and current outstanding debt. 28/36 Ratio is the standard formula for mortgage affordability. The maximum home loans that a bank will lend often based on this.
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*Gross monthly income  Total Down Payment
  

*Monthly Debt Payments  Annual cost for insurance
  
Annual cost for property taxes


*Annual interest rate
  *Mortgage terms
%  

  

Calculation Results:

Loan Amount: 128,717.05
House Price: 138,717.05

Mortgage affordability
Owning a home, and incurring a mortgage is usually one of the most important financial aspects of a person's life. Different factors are that affect a persons ability to make payments on a mortgage, especially in terms of income and and taxes. It has a major impact on one's sense of financial security since a house has historically been the largest piece of one's investment portfolio at retirement.

Standard formula for mortgage affordability
To mortgage lenders, 28/36 is the ratio of a borrower’s debts to their gross income.This means the monthly mortgage payment, plus monthly property taxes, plus monthly house insurance may not exceed 28% of gross monthly income. The 36% refers to a similar ratio, it refers to the fact that total long term debt from all sources may not exceed 36% of gross monthly income. Long term debt is generally defined as any debts with more than 10 monthly payments still outstanding.



Top Use:    Mortgage Affordability Calculator - Income:6000.00 Interest rate:4.5% term:30Years

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