Money Factor Conversion to Interest Rate Calculator

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Home Affordability Calculator .hac-wrapper { font-family: 'Segoe UI', Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 0 auto; padding: 20px; background: #f9f9f9; border: 1px solid #e0e0e0; border-radius: 8px; } .hac-calculator-box { background: #ffffff; padding: 25px; border-radius: 8px; box-shadow: 0 4px 15px rgba(0,0,0,0.05); margin-bottom: 40px; } .hac-title { text-align: center; color: #2c3e50; margin-bottom: 25px; font-size: 28px; } .hac-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; } .hac-input-group { margin-bottom: 15px; } .hac-input-group label { display: block; margin-bottom: 8px; font-weight: 600; color: #555; font-size: 14px; } .hac-input-group input, .hac-input-group select { width: 100%; padding: 12px; border: 1px solid #ddd; border-radius: 4px; font-size: 16px; box-sizing: border-box; transition: border-color 0.3s; } .hac-input-group input:focus { border-color: #3498db; outline: none; } .hac-full-width { grid-column: 1 / -1; } .hac-btn { width: 100%; padding: 15px; background-color: #27ae60; color: white; border: none; border-radius: 4px; font-size: 18px; font-weight: bold; cursor: pointer; transition: background-color 0.2s; margin-top: 10px; } .hac-btn:hover { background-color: #219150; } .hac-results { margin-top: 30px; padding: 20px; background-color: #f0f8ff; border-left: 5px solid #3498db; display: none; } .hac-result-row { display: flex; justify-content: space-between; margin-bottom: 10px; padding-bottom: 10px; border-bottom: 1px solid #ddeeff; } .hac-result-row:last-child { border-bottom: none; margin-bottom: 0; padding-bottom: 0; } .hac-result-label { color: #555; } .hac-result-value { font-weight: bold; color: #2c3e50; font-size: 18px; } .hac-main-result { text-align: center; margin-bottom: 20px; } .hac-main-result .val { font-size: 36px; color: #27ae60; font-weight: 800; display: block; } .hac-main-result .lbl { font-size: 14px; text-transform: uppercase; letter-spacing: 1px; color: #777; } .hac-content { line-height: 1.6; color: #333; } .hac-content h2 { color: #2c3e50; margin-top: 30px; border-bottom: 2px solid #eee; padding-bottom: 10px; } .hac-content h3 { color: #34495e; margin-top: 25px; } .hac-content p, .hac-content li { margin-bottom: 15px; } .hac-content ul { padding-left: 20px; } @media (max-width: 600px) { .hac-grid { grid-template-columns: 1fr; } }

Home Affordability Calculator

30 Years 20 Years 15 Years 10 Years
You can afford a home up to $0
Max Monthly Payment (P&I + Escrow): $0
Est. Principal & Interest: $0
Est. Tax & Insurance: $0
Loan Amount: $0

How Much House Can You Really Afford?

Buying a home is one of the most significant financial decisions you will make in your lifetime. Understanding your budget before you start house hunting is crucial to avoiding financial strain. This Home Affordability Calculator helps you estimate the maximum home price you can afford based on your income, debts, down payment, and current interest rates.

Understanding the 28/36 Rule

Most lenders use the "28/36 rule" to determine how much money they are willing to lend you. This rule is composed of two debt-to-income (DTI) ratios:

  • Front-End Ratio (28%): Your estimated monthly housing costs (mortgage principal, interest, taxes, and insurance) should not exceed 28% of your gross monthly income.
  • Back-End Ratio (36%): Your total monthly debt payments (housing costs plus credit cards, student loans, car loans, etc.) should not exceed 36% of your gross monthly income.

This calculator computes both scenarios and uses the lower of the two figures to ensure you remain within safe lending limits.

Factors That Impact Your Affordability

Several variables can drastically change your buying power:

  1. Interest Rates: Even a 1% increase in interest rates can reduce your buying power by tens of thousands of dollars.
  2. Down Payment: A larger down payment reduces the loan amount, which lowers your monthly payments and allows you to afford a more expensive home.
  3. Monthly Debts: High monthly obligations (like an expensive car payment) lower your back-end ratio, reducing the amount available for a mortgage.
  4. Taxes and Insurance: In high-tax areas, a significant portion of your monthly payment goes to escrow rather than equity, reducing the loan size you can carry.

Tips for Improving Your Home Buying Budget

If the calculated amount is lower than you hoped, consider paying down high-interest consumer debt before applying for a mortgage. Reducing your monthly obligations directly increases the amount available for your mortgage payment. Additionally, saving for a larger down payment can help you secure better loan terms and avoid Private Mortgage Insurance (PMI).

function calculateHouseAffordability() { // 1. Get input values var annualIncome = parseFloat(document.getElementById('hacAnnualIncome').value); var monthlyDebts = parseFloat(document.getElementById('hacMonthlyDebts').value); var downPayment = parseFloat(document.getElementById('hacDownPayment').value); var interestRate = parseFloat(document.getElementById('hacInterestRate').value); var loanTermYears = parseFloat(document.getElementById('hacLoanTerm').value); var estTaxIns = parseFloat(document.getElementById('hacEstTaxIns').value); // 2. Validate inputs if (isNaN(annualIncome) || annualIncome <= 0) { alert("Please enter a valid Annual Gross Income."); return; } if (isNaN(monthlyDebts)) monthlyDebts = 0; if (isNaN(downPayment)) downPayment = 0; if (isNaN(interestRate) || interestRate <= 0) { alert("Please enter a valid Interest Rate."); return; } if (isNaN(estTaxIns)) estTaxIns = 0; // 3. Calculate Monthly Gross Income var monthlyGross = annualIncome / 12; // 4. Calculate Max Payment based on Front-End Ratio (28%) var maxPaymentFrontEnd = monthlyGross * 0.28; // 5. Calculate Max Payment based on Back-End Ratio (36%) // Total debt allowed = Income * 0.36 // Max Housing = Total allowed – Existing Monthly Debts var maxTotalDebtAllowed = monthlyGross * 0.36; var maxPaymentBackEnd = maxTotalDebtAllowed – monthlyDebts; // 6. Determine the limiting Allowable Monthly Housing Payment // Lenders take the lower of the two var maxAllowablePayment = Math.min(maxPaymentFrontEnd, maxPaymentBackEnd); // 7. Subtract Taxes and Insurance to find amount available for Principal & Interest (P&I) var availableForPI = maxAllowablePayment – estTaxIns; // Handle case where debts are too high if (availableForPI <= 0) { document.getElementById('hacResult').style.display = 'block'; document.getElementById('hacMaxHomePrice').innerHTML = "$0"; document.getElementById('hacMaxMonthlyTotal').innerHTML = "$0"; document.getElementById('hacPrincipalInterest').innerHTML = "$0"; document.getElementById('hacTaxInsDisplay').innerHTML = "$" + estTaxIns.toLocaleString(); document.getElementById('hacLoanAmount').innerHTML = "$0"; return; } // 8. Calculate Maximum Loan Amount based on P&I available // Formula: PV = PMT * [ (1 – (1+r)^-n) / r ] var monthlyRate = (interestRate / 100) / 12; var numberOfPayments = loanTermYears * 12; // Math.pow(base, exponent) var loanAmount = availableForPI * ( (1 – Math.pow(1 + monthlyRate, -numberOfPayments)) / monthlyRate ); // 9. Calculate Total Home Price var totalHomePrice = loanAmount + downPayment; // 10. Display Results document.getElementById('hacResult').style.display = 'block'; // Helper for formatting currency function formatMoney(num) { return "$" + Math.floor(num).toLocaleString(); } document.getElementById('hacMaxHomePrice').innerHTML = formatMoney(totalHomePrice); document.getElementById('hacMaxMonthlyTotal').innerHTML = formatMoney(maxAllowablePayment); document.getElementById('hacPrincipalInterest').innerHTML = formatMoney(availableForPI); document.getElementById('hacTaxInsDisplay').innerHTML = formatMoney(estTaxIns); document.getElementById('hacLoanAmount').innerHTML = formatMoney(loanAmount); }

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