Most mortgage calculators work with four variables: total amount of loan (the cost of your house, less down payment), length of loan (in years or months), interest rate (assuming a fixed-rate loan), and monthly payment. Plug in any three variables, and the calculator will provide the fourth.
Most people use mortgage calculators to determine projected monthly payments for a particular house they want to buy.
Our mortgage calculator works a little differently. Based on your annual income and the percentage of that income you can afford to spend on housing, our calculator tells you how much “house” you can afford, as well as what your monthly payments would be. You can adjust the variables to produce different results, but will have a good idea of what sorts of houses, and what neighborhoods, you should be looking at.
Happy house hunting!