What is My Max Purchase Price?
Do you know what you want for your payment and want to know how much house that will buy? Use our simple Affordability Calculator to show you the answer.
Affordability Calculator Info
The Affordability Calculator calculates the house purchase price based on your desired payment, interest rate, and other basic values. Unlike other calculators, it can even accept your down payment and tax amounts as a percentage of the home price it is computing!
Like any loan calculator, it is based on a couple of important assumptions:
- The interest rate is fixed for the length of the loan - adjustable rate mortgages do not apply here.
- Payments are made at the end of each month.
- Only one loan (a "first" loan) is calculated. If you want to calculate the payment for multiple loans, use our Advanced Mortgage Payment Calculator.
- The Mortgage Payment Calculator does not try to qualify you for the loan calculated. For that you will need a good lender - give us a call.
In addition, you may want to calculate your payment based on purchase price or perhaps try one of our other calculators.
Tips for Using the Mortgage Payment Calculator
Here is an explanation of each of the input fields and tips on how to use them:
- Full Payment (PITI) - This is the full amount of your monthly payment. It should include the Principal and Interest for the loan plus the Taxes and Insurance (PITI).
- Amount Down - This is the amount of money you plan to put down on the home (so you will need a loan for the remainder of the Purchase Price). If you have a fixed amount of money that you plan to put down, enter it in dollars or, if you want to put down a certain percentage of the purchase price, you may enter that percentage. Make sure to click the appropriate units.
- Interest Rate - This is the Fixed Interest Rate for the Loan. Check with one of our lenders to get the current rate.
- Loan Length - Known also as the Loan Term, this is how long, in years, it will take to pay off the loan (assuming you pay the standard amortized payment).
- Annual Taxes - The yearly property tax amount. If you are not sure how much that should be, see our chart for local property taxes.
- Insurance - This is the yearly insurance premium (if you have a monthly amount, just multiply it by 12). Depending on the type of loan, this could be for an Owner's Policy or a Landlord's policy. Also, some loans require Private Mortgage Insurance (PMI) so, to get the true yearly payment, you will have to add in any PMI as well.
Here are descriptions for each of the output fields:
- Amount Financed - This is the amount of the loan. It is equal to the Purchase Price minus the Amount Down (in dollars).
- Down Payment Amount - This result shows the Down Payment in both Dollars and Percent. (One of the values was entered by you, the other calculated).
- Annual Taxes - This result shows Annual Taxes in Dollars and as a Percentage. (One of the values was entered by you, the other calculated).
- Basic Payment (PI) - This is the Principal and Interest payment (PI) for the Loan. It does not include any payment for Taxes or Insurance - only the debt.
- Purchase Price - This is the full purchase price of the home that meets your payment. If you plan to add your closing costs into the loan, then you should subtract that from this amount to figure your maximum offer amount.
Disclaimer - We offer this calculator for educational and informational purposes. There is no warranty, expressed or implied, for the accuracy of this information or it's applicability to your financial situation.
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