Hdfc Mortgage Loan Interest Rate Calculator

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Mortgage Affordability Calculator

Determine how much house you can afford based on your income, debts, and current mortgage rates.

(Car loans, student loans, credit card minimums, etc.)
30 Years 20 Years 15 Years 10 Years

Affordability Estimate

Based on standard debt-to-income guidelines (28%/36% rule):

Maximum Home Price: $0

Max Loan Amount: $0
Max Monthly Payment (P&I): $0
Your Debt-to-Income (Back-end): 0%

*Note: The estimated maximum payment includes Principal and Interest only. You must also budget for property taxes, homeowners insurance, and potentially PMI, which will reduce your purchasing power.

function calculateAffordability() { var annualIncomeStr = document.getElementById('annualIncome').value; var monthlyDebtsStr = document.getElementById('monthlyDebts').value; var downPaymentStr = document.getElementById('downPaymentAvailable').value; var interestRateStr = document.getElementById('interestRate').value; var loanTermStr = document.getElementById('loanTerm').value; var annualIncome = parseFloat(annualIncomeStr); var monthlyDebts = parseFloat(monthlyDebtsStr); var downPayment = parseFloat(downPaymentStr); var interestRate = parseFloat(interestRateStr); var loanTermYears = parseInt(loanTermStr); if (isNaN(annualIncome) || annualIncome <= 0 || isNaN(interestRate) || interestRate 36% income) if (maxAllowedMonthlyPayment 0) { currentDti = ((monthlyDebts + maxAllowedMonthlyPayment) / monthlyGrossIncome) * 100; } // Reverse calculate Loan Amount from the Max Monthly Payment // Formula: Loan = Payment * ({1 – [1 + r]^(-n)} / r) var monthlyRate = (interestRate / 100) / 12; var numPayments = loanTermYears * 12; var maxLoanAmount = 0; if (maxAllowedMonthlyPayment > 0 && monthlyRate > 0) { var discountFactor = (1 – Math.pow(1 + monthlyRate, -numPayments)) / monthlyRate; maxLoanAmount = maxAllowedMonthlyPayment * discountFactor; } else if (maxAllowedMonthlyPayment > 0 && monthlyRate === 0) { maxLoanAmount = maxAllowedMonthlyPayment * numPayments; } var maxHomePrice = maxLoanAmount + downPayment; // Formatting results to currency var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', maximumFractionDigits: 0 }); document.getElementById('maxHomePrice').innerHTML = formatter.format(maxHomePrice); document.getElementById('maxLoanAmount').innerHTML = formatter.format(maxLoanAmount); document.getElementById('maxMonthlyPI').innerHTML = formatter.format(maxAllowedMonthlyPayment); document.getElementById('dtiResult').innerHTML = currentDti.toFixed(1) + "%"; document.getElementById('affordabilityResult').style.display = 'block'; }

Understanding Mortgage Affordability

Determining "how much house can I afford" is the crucial first step in the home-buying process. Before looking at listings, it is essential to understand what lenders believe you can responsibly pay back. This calculator uses standard industry guidelines to estimate your maximum purchasing power.

Key Factors Affecting Your Affordability

Lenders primarily look at four main components when determining how much they are willing to lend you:

  1. Gross Annual Income: Your total income before taxes. Lenders use this to calculate your monthly gross income as a baseline for affordability.
  2. Debt-to-Income Ratio (DTI): This is perhaps the most critical metric. Lenders use two types:
    • Front-End Ratio: The percentage of your gross monthly income that goes toward housing costs (Principal, Interest, Taxes, Insurance). Lenders typically prefer this to be under 28%.
    • Back-End Ratio: The percentage of your income that goes toward all debt obligations, including the proposed new mortgage, car payments, student loans, and credit card minimums. Lenders generally prefer this to be under 36% (though some loan programs allow higher ratios).
  3. Down Payment: The amount of cash you have available to pay upfront. A larger down payment reduces the loan amount required, which lowers your monthly payment and increases the total home price you can afford.
  4. Interest Rate & Loan Term: Your interest rate directly impacts your monthly payment. A lower rate means a lower payment for the same loan amount, increasing your buying power. Similarly, a longer loan term (e.g., 30 years vs. 15 years) lowers monthly payments but increases total interest paid over time.

How This Calculator Works

This tool utilizes the standard "28/36 rule." It calculates the maximum monthly payment you can afford without exceeding a 28% housing ratio or a 36% total debt ratio. It then works backward using your selected interest rate and loan term to determine the maximum loan amount supported by that payment. Finally, adds your available down payment to that loan amount to estimate your maximum total home price.

Note: The calculator above estimates the Principal and Interest (P&I) portion of your payment. In reality, your actual monthly outlay will be higher because you must also escrow funds for property taxes and homeowner's insurance.

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