Mortgage Calculator Usda

.calc-container {
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max-width: 800px;
margin: 20px auto;
padding: 25px;
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border-radius: 12px;
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box-shadow: 0 4px 6px rgba(0,0,0,0.05);
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.calc-header {
text-align: center;
margin-bottom: 25px;
}
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Home Affordability Calculator

Estimate how much house you can afford based on your income and debts.

How is Home Affordability Calculated?

Buying a home is the most significant financial decision most people ever make. To determine your “buying power,” lenders primarily look at your Debt-to-Income (DTI) ratio. Our calculator uses the conservative “36% Rule,” which suggests that your total monthly debt payments (including your new mortgage) should not exceed 36% of your gross monthly income.

The 28/36 Rule Explained

Financial experts often point to the 28/36 rule as a benchmark for affordability:

• 28%: Your maximum monthly mortgage payment (Principal, Interest, Taxes, and Insurance – PITI) should not exceed 28% of your gross monthly income.
• 36%: Your total debt obligations (mortgage plus car loans, student loans, and credit card debt) should not exceed 36% of your gross monthly income.

Key Factors Impacting Your Budget

Beyond your salary, several variables dictate your maximum purchase price:

1. Interest Rates: A 1% increase in interest rates can reduce your buying power by roughly 10%.
2. Down Payment: A larger down payment reduces your loan amount and can eliminate the need for Private Mortgage Insurance (PMI).
3. Property Taxes: These vary wildly by location. Our calculator estimates an average tax and insurance cost of roughly 1.5% of the home value annually.

Example Calculation

If you earn $100,000 per year, your gross monthly income is $8,333. Using a 36% DTI, your total allowable monthly debt is $3,000. If you have a $400 car payment, you have $2,600 left for your mortgage, taxes, and insurance. With a 6.5% interest rate and 20% down, this might allow for a home priced around $450,000.

function calculateAffordability() {
var annualIncome = parseFloat(document.getElementById(‘annualIncome’).value);
var monthlyDebts = parseFloat(document.getElementById(‘monthlyDebts’).value);
var downPayment = parseFloat(document.getElementById(‘downPayment’).value);
var annualRate = parseFloat(document.getElementById(‘interestRate’).value);
var termYears = parseFloat(document.getElementById(‘loanTerm’).value);
var dti = parseFloat(document.getElementById(‘dtiLimit’).value) / 100;
if (isNaN(annualIncome) || isNaN(monthlyDebts) || isNaN(downPayment) || isNaN(annualRate)) {
alert(“Please enter valid numbers in all fields.”);
return;
}
// 1. Calculate Monthly Gross Income
var monthlyGross = annualIncome / 12;
// 2. Max Monthly Debt allowed (PITI + existing debts)
var maxTotalMonthlyDebt = monthlyGross * dti;
// 3. Amount available for PITI (Principal, Interest, Taxes, Insurance)
var availablePITI = maxTotalMonthlyDebt – monthlyDebts;
if (availablePITI <= 0) {
alert("Your current debts exceed the recommended DTI ratio for your income level.");
return;
}
// 4. Estimate Taxes and Insurance (approx 1.2% tax + $150 insurance monthly)
// To solve for Home Price (HP), we know:
// P&I = (HP – Down) * [r(1+r)^n / ((1+r)^n – 1)]
// Taxes/Ins = HP * 0.00125 (approximate)
// availablePITI = P&I + Taxes/Ins
var monthlyRate = (annualRate / 100) / 12;
var totalMonths = termYears * 12;
// Mortgage factor (M) = [r(1+r)^n / ((1+r)^n – 1)]
var mFactor = (monthlyRate * Math.pow(1 + monthlyRate, totalMonths)) / (Math.pow(1 + monthlyRate, totalMonths) – 1);
// var Tax/Insurance Factor (T) be 0.0015 of Home Price monthly
var tFactor = 0.0015;
// Formula: availablePITI = (HomePrice – DownPayment) * mFactor + (HomePrice * tFactor)
// availablePITI = HomePrice * mFactor – DownPayment * mFactor + HomePrice * tFactor
// availablePITI + DownPayment * mFactor = HomePrice * (mFactor + tFactor)
// HomePrice = (availablePITI + DownPayment * mFactor) / (mFactor + tFactor)
var estimatedHomePrice = (availablePITI + (downPayment * mFactor)) / (mFactor + tFactor);
var loanAmount = estimatedHomePrice – downPayment;
if (loanAmount < 0) {
estimatedHomePrice = downPayment;
loanAmount = 0;
}
// Display Results
document.getElementById('results').style.display = 'block';
document.getElementById('resHomePrice').innerText = '$' + Math.round(estimatedHomePrice).toLocaleString();
document.getElementById('resMonthlyPayment').innerText = '$' + Math.round(availablePITI).toLocaleString();
document.getElementById('resLoanAmount').innerText = '$' + Math.round(loanAmount).toLocaleString();
document.getElementById('resMinIncome').innerText = '$' + Math.round(monthlyGross).toLocaleString();
// Scroll to results
document.getElementById('results').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}