.calculator-wrapper {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 600px;
margin: 20px auto;
background-color: #f9f9f9;
}
.calculator-title {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.calculator-inputs {
display: grid;
grid-template-columns: repeat(auto-fit, minmax(250px, 1fr));
gap: 15px;
margin-bottom: 20px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calculator-button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculator-button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
background-color: #e9ecef;
border: 1px solid #ddd;
border-radius: 4px;
text-align: center;
font-size: 18px;
color: #333;
min-height: 50px; /* To prevent layout shift when empty */
}
.calculator-result strong {
color: #28a745;
}
function calculateAffordability() {
var annualIncome = parseFloat(document.getElementById("annualIncome").value);
var debtToIncomeRatio = parseFloat(document.getElementById("debtToIncomeRatio").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTerm = parseFloat(document.getElementById("loanTerm").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(annualIncome) || annualIncome <= 0 ||
isNaN(debtToIncomeRatio) || debtToIncomeRatio 100 ||
isNaN(downPayment) || downPayment < 0 ||
isNaN(interestRate) || interestRate < 0 ||
isNaN(loanTerm) || loanTerm 0) {
// Formula for loan amount from monthly payment:
// L = P * [(1 + c)^n – 1] / [c(1 + c)^n]
maxLoanAmount = maxMonthlyPIPayment * (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1) / (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments));
} else { // Handle 0% interest rate (though highly unlikely for mortgages)
maxLoanAmount = maxMonthlyPIPayment * numberOfPayments;
}
var maxHomePrice = maxLoanAmount + downPayment;
resultDiv.innerHTML = "Based on your inputs, you could potentially afford a home up to: $" + maxHomePrice.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + ".";
resultDiv.innerHTML += "This includes your down payment of: $" + downPayment.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + ".";
resultDiv.innerHTML += "The estimated maximum loan amount is: $" + maxLoanAmount.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",") + ".";
resultDiv.innerHTML += "Note: This calculator provides an estimate. It does not include property taxes, homeowner's insurance, HOA fees, or other potential costs, which will affect your actual affordability.";
}
Understanding Mortgage Affordability
Determining how much house you can afford is a crucial step in the home-buying process. A mortgage affordability calculator helps you estimate the maximum home price you can qualify for based on your financial situation. It's important to understand the key factors involved and that this is an estimate, not a guarantee of loan approval.
Key Factors in Mortgage Affordability:
Annual Household Income: This is the primary factor lenders consider. Higher income generally means you can handle higher monthly payments.
Debt-to-Income Ratio (DTI): This ratio compares your total monthly debt payments (including the potential mortgage payment, car loans, student loans, credit card minimums) to your gross monthly income. Lenders typically prefer a DTI of 43% or lower, though some programs allow higher ratios. A common guideline for housing expenses alone (Principal, Interest, Taxes, Insurance – PITI) is around 28-36% of your gross monthly income.
Down Payment: The larger your down payment, the less you need to borrow, which directly impacts the maximum loan amount you can afford and potentially the interest rate you receive. A larger down payment can also help you avoid Private Mortgage Insurance (PMI).
Interest Rate: Even a small difference in the interest rate can significantly impact your monthly payment and the total cost of the loan over time. Higher interest rates mean higher monthly payments for the same loan amount.
Loan Term: This is the length of time you have to repay the loan, typically 15 or 30 years. Shorter loan terms usually have higher monthly payments but result in paying less interest overall.
How the Calculator Works (Simplified):
Our calculator first determines your maximum allowable monthly debt based on your income and target DTI. It then uses a mortgage payment formula to calculate the maximum loan amount you can afford given that monthly payment limit, the interest rate, and the loan term. Finally, it adds your specified down payment to this maximum loan amount to estimate the maximum home price you can potentially afford.
Important Considerations:
This calculator focuses on the loan amount and your DTI. However, your actual monthly housing cost (PITI) will also include:
Property Taxes: These vary significantly by location.
Homeowner's Insurance: Required by lenders to protect against damage.
Private Mortgage Insurance (PMI): Usually required if your down payment is less than 20% of the home's purchase price.
Homeowner Association (HOA) Fees: If applicable to the property.
Always consult with a mortgage lender for a pre-approval to get a precise understanding of your borrowing power and the specific costs associated with buying a home in your desired area.