More detailed house affordability calculator, as you can see in the picture, where you have to fill some detail information regarding your financial condition and your budget, your mortgage plan and your bank or financial institution qualification and based on your inputs, this calculator will calculate the optimum house price based on the closest conditions you can achieve.
Income and Debt Expenses
Gross Monthly Income: Your gross income per month
Monthly Debt Repayment: Your debt obligation that you have to pay monthly, for example your credit card loan, student loan, car loan etc.
Down Payment and Closing Cost: I think you know what down payment means. And closing costs are any costs that arise in house transaction, like legal fee, administration fee, taxes etc
Monthly Payment: This is your expected monthly mortgage payment
Monthly Housing Costs: These are other housing costs in addition of your mortgage, like insurance, that you have to pay monthly along with paying your mortgage payment
Interest Rate: This is your expected interest rate based on bank or financial institution interest rate
Payment Period: This is the period (in year) that you plan to payoff your mortgage
Closing Costs: Check your bank or financial institution qualification for minimum closing costs. I put 5% from house price.
Minimum Down Payment Required: Check your bank or financial institution qualification for minimum down payment needed.
Maximum Debt Repayment Allowed: Check your bank or financial institution qualification for maximum percentage of debt repayment allowed from your gross income. The total of your debt repayment + house payment cannot exceed this number.
Maximum Housing Expense Allowed (%): This number will limit the amount of your monthly expenses that has been budgeted for paying your monthly mortgage.After you finished filling the left part of this worksheet, you can see your affordable house price including the detail of down payment and closing cost needed along with allowable monthly payment.