Casio Calculator Change Tax Rate

Understanding how much mortgage you can afford is a crucial step in the home-buying process. This calculator helps you estimate your maximum borrowing capacity based on your income, debts, and desired monthly payment. It's important to remember that this is an estimation, and your actual mortgage approval will depend on a lender's detailed assessment of your financial situation, credit history, and market conditions.

Several factors influence how much you can borrow. Lenders typically look at your Debt-to-Income ratio (DTI), which is the percentage of your gross monthly income that goes towards paying your monthly debt obligations. Generally, lenders prefer a DTI of 43% or lower, but this can vary. Your credit score also plays a significant role, as a higher score often leads to better interest rates and more favorable loan terms, potentially increasing your borrowing power. The down payment you can make also affects your loan amount; a larger down payment reduces the principal you need to borrow, making the mortgage more affordable.

This calculator simplifies the process by asking for key financial details. By inputting your estimated gross monthly income, your total monthly debt payments (excluding the potential mortgage), your desired maximum monthly mortgage payment (principal, interest, taxes, and insurance – PITI), and the estimated mortgage interest rate, you can get a quick estimate of your affordable home price.

function calculateAffordability() { var grossMonthlyIncome = parseFloat(document.getElementById("grossMonthlyIncome").value); var totalMonthlyDebts = parseFloat(document.getElementById("totalMonthlyDebts").value); var desiredMonthlyPayment = parseFloat(document.getElementById("desiredMonthlyPayment").value); var interestRate = parseFloat(document.getElementById("interestRate").value) / 100; var loanTerm = parseFloat(document.getElementById("loanTerm").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(grossMonthlyIncome) || grossMonthlyIncome <= 0 || isNaN(totalMonthlyDebts) || totalMonthlyDebts < 0 || isNaN(desiredMonthlyPayment) || desiredMonthlyPayment <= 0 || isNaN(interestRate) || interestRate < 0 || isNaN(loanTerm) || loanTerm maxAllowedPITI) { resultDiv.innerHTML = "Your desired monthly payment ($" + desiredMonthlyPayment.toFixed(2) + ") exceeds the estimated maximum allowed PITI based on a 43% DTI ratio ($" + maxAllowedPITI.toFixed(2) + "). You may need to adjust your desired payment or income/debt figures."; return; } // Calculate the maximum loan amount that fits the desired monthly PITI payment // Using the mortgage payment formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] // Where: // M = Monthly Payment (desiredMonthlyPayment) // P = Principal Loan Amount (what we want to find) // i = Monthly Interest Rate (interestRate / 12) // n = Total Number of Payments (loanTerm * 12) var monthlyInterestRate = interestRate / 12; var numberOfPayments = loanTerm * 12; var maxLoanAmount = 0; if (monthlyInterestRate > 0) { var factor = Math.pow(1 + monthlyInterestRate, numberOfPayments); maxLoanAmount = desiredMonthlyPayment * (factor – 1) / (monthlyInterestRate * factor); } else { // Handle 0% interest rate case maxLoanAmount = desiredMonthlyPayment * numberOfPayments; } // Display results var outputHTML = "

Your Estimated Affordability

"; outputHTML += "Based on your inputs, the maximum loan amount you might afford is approximately: $" + maxLoanAmount.toFixed(2) + ""; outputHTML += "This estimate assumes your desired monthly payment of $" + desiredMonthlyPayment.toFixed(2) + " covers Principal, Interest, Taxes, and Insurance (PITI)."; outputHTML += "Important Considerations:"; outputHTML += "

"; outputHTML += "
• This calculator is an estimate and does not constitute a loan offer.
"; outputHTML += "
• Your actual loan approval will depend on lender's underwriting, credit score, down payment, and other factors.
"; outputHTML += "
• Property taxes and homeowner's insurance costs can vary significantly by location and property type.
"; outputHTML += "
• Don't forget to factor in closing costs, moving expenses, and potential home maintenance.
"; outputHTML += "

"; resultDiv.innerHTML = outputHTML; }