Aircraft Loan Calculator

Mortgage Affordability Calculator

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Your Estimated Affordability

Maximum Home Price

$0

Max Monthly Payment

$0

Total Loan Amount

$0

function calculateAffordability() { var annualIncome = parseFloat(document.getElementById('annualIncome').value); var monthlyDebts = parseFloat(document.getElementById('monthlyDebts').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var interestRate = parseFloat(document.getElementById('interestRate').value); var loanTerm = parseFloat(document.getElementById('loanTerm').value); var dtiLimit = parseFloat(document.getElementById('dtiRatio').value); if (isNaN(annualIncome) || isNaN(monthlyDebts) || isNaN(downPayment) || isNaN(interestRate)) { alert("Please enter valid numeric values"); return; } // Monthly calculations var monthlyGrossIncome = annualIncome / 12; var maxAllowedTotalDebt = monthlyGrossIncome * (dtiLimit / 100); var maxMonthlyPI = maxAllowedTotalDebt – monthlyDebts; if (maxMonthlyPI <= 0) { document.getElementById('resultsArea').style.display = 'block'; document.getElementById('maxHomePrice').innerText = "Insufficient Income"; document.getElementById('maxMonthlyPmt').innerText = "$0"; document.getElementById('totalLoan').innerText = "$0"; return; } // Mortgage Math: PV = PMT * [(1 – (1+r)^-n) / r] var r = (interestRate / 100) / 12; var n = loanTerm * 12; var loanAmount = maxMonthlyPI * ((1 – Math.pow(1 + r, -n)) / r); var homePrice = loanAmount + downPayment; // Update UI document.getElementById('resultsArea').style.display = 'block'; document.getElementById('maxHomePrice').innerText = "$" + Math.round(homePrice).toLocaleString(); document.getElementById('maxMonthlyPmt').innerText = "$" + Math.round(maxMonthlyPI).toLocaleString(); document.getElementById('totalLoan').innerText = "$" + Math.round(loanAmount).toLocaleString(); // Scroll to results document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

Understanding Mortgage Affordability

Before you start touring homes, it is vital to understand how lenders calculate your purchasing power. This calculator uses the Debt-to-Income (DTI) ratio, a primary metric used by banks to determine if you can afford a mortgage.

How the Calculation Works

Most lenders prefer a DTI ratio between 36% and 43%. Our calculator defaults to 36%, which is considered "conservative and safe." Here is the breakdown of the factors involved:

• Gross Annual Income: Your total earnings before taxes.
• Monthly Debts: Fixed obligations like car payments, student loans, and minimum credit card payments.
• The Down Payment: The cash you bring to the closing table. A higher down payment directly increases your home price capacity.
• Interest Rates: Even a 1% change in interest rates can shift your buying power by tens of thousands of dollars.

Example Scenario

If you earn $80,000 per year, your monthly gross income is $6,667. At a 36% DTI, your total monthly debt allowance is $2,400. If you already have a $400 car payment, you have $2,000 left for your mortgage principal, interest, taxes, and insurance.

Pro Tip: This calculator estimates the maximum loan based on Principal and Interest. Remember to set aside roughly 1% of the home's value annually for property taxes and insurance (PITI), which are not included in the basic loan math above.

Ways to Increase Your Budget

1. Pay Down Debt: Reducing your monthly car or credit card payments significantly boosts your "available" income for a mortgage.
2. Improve Credit Score: A higher credit score secures a lower interest rate, which lowers the monthly cost of the same loan amount.
3. Save a Larger Down Payment: This reduces the loan-to-value ratio and may eliminate the need for Private Mortgage Insurance (PMI).