Mortgage Rates Ohio Calculator

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Mortgage Affordability Calculator

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

Car loans, student loans, credit card minimums.
30 Years 20 Years 15 Years 10 Years

Your Affordability Results

Maximum Home Price
$0
Monthly Loan (P&I)
$0
Total Monthly Limit
$0

Understanding Mortgage Affordability

Before you start touring homes, it is vital to understand how lenders view your finances. This calculator uses the Debt-to-Income (DTI) ratio, which is the primary metric banks use to determine your borrowing limit. Most conventional lenders look for a "Front-End" ratio of 28% and a "Back-End" ratio (all debts) of no more than 36% to 43%.

Key Factors Influencing Your Budget

  • Gross Annual Income: Lenders use your pre-tax income to calculate your maximum monthly payment capacity.
  • Monthly Debt: Your existing obligations (student loans, car notes, minimum credit card payments) directly reduce the amount you can put toward a mortgage.
  • Interest Rates: A 1% increase in interest rates can reduce your buying power by approximately 10%.
  • The 36% Rule: This calculator conservatively assumes that your total monthly debt payments, including your new mortgage, should not exceed 36% of your gross income.

Example Calculation

If you earn $85,000 per year, your monthly gross income is $7,083. Using a 36% DTI limit, your total allowed monthly debt is $2,550.

If you have $400 in existing car and student loan payments, you have $2,150 left for your monthly mortgage payment (Principal, Interest, Taxes, and Insurance). Subtracting roughly $350 for estimated taxes and insurance leaves you with $1,800 for Principal and Interest.

function calculateMortgageAffordability() { var annualIncome = parseFloat(document.getElementById('annualIncome').value); var monthlyDebt = parseFloat(document.getElementById('monthlyDebt').value); var downPayment = parseFloat(document.getElementById('downPayment').value); var interestRate = parseFloat(document.getElementById('interestRate').value); var loanTermYears = parseFloat(document.getElementById('loanTerm').value); if (isNaN(annualIncome) || isNaN(monthlyDebt) || isNaN(downPayment) || isNaN(interestRate)) { alert('Please enter valid numerical values.'); return; } // Standard DTI (Debt-to-Income) limit – using 36% as a conservative standard var dtiLimit = 0.36; var monthlyGross = annualIncome / 12; var maxTotalMonthlyDebt = monthlyGross * dtiLimit; // Remaining amount available for the mortgage payment (PITI) var maxPITI = maxTotalMonthlyDebt – monthlyDebt; // Estimating Property Taxes and Insurance (usually ~1.5% of home value annually, divided by 12) // To solve for home price with taxes/ins, we use a factor: ~20% of the payment goes to T&I var monthlyTaxAndInsuranceEstimate = maxPITI * 0.18; var availableForPrincipalAndInterest = maxPITI – monthlyTaxAndInsuranceEstimate; if (availableForPrincipalAndInterest <= 0) { document.getElementById('totalPriceDisplay').innerText = "$0"; document.getElementById('monthlyPIDisplay').innerText = "$0"; document.getElementById('totalMonthlyDisplay').innerText = "$0"; return; } // Mortgage Formula: Loan = P * [(1+r)^n – 1] / [r(1+r)^n] var monthlyRate = (interestRate / 100) / 12; var numberOfPayments = loanTermYears * 12; var loanAmount = availableForPrincipalAndInterest * (Math.pow(1 + monthlyRate, numberOfPayments) – 1) / (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)); var totalHomePrice = loanAmount + downPayment; // Formatting for display var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', maximumFractionDigits: 0 }); document.getElementById('totalPriceDisplay').innerText = formatter.format(totalHomePrice); document.getElementById('monthlyPIDisplay').innerText = formatter.format(availableForPrincipalAndInterest); document.getElementById('totalMonthlyDisplay').innerText = formatter.format(maxPITI); } // Run initial calculation on load window.onload = function() { calculateMortgageAffordability(); };

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