Payment Calculator

To figure out an estimated maximum monthly mortgage payment that you may qualify for, please review the chart below. To figure out a more precise maximum monthly mortgage payment that you may qualify for, please see the formula below the chart.

To figure out a precise monthly mortgage payment that you may qualify for, you first need to know:

1. Your gross income [income before taxes]

2. Your total monthly debt, minus your current rent [debt examples: loans, car payments, credit cards, etc.]

There Are Two Estimates That You Need To Calculate

The first estimate is your housing expense and the second is your monthly debt expense. The maximum monthly mortgage payment that you may qualify for will be the lower of the two estimates.

Example

Suppose you make $45,000 a year and you have a monthly debt payment of $625 (a car payment and a few credit card payments).

Estimate #1 (housing expense)

A. Your Gross income is $45,000.

B. Divide line A by 12: $3,750.

C. Multiply line B by 33% (.33): $1,237.50

In this example, your maximum monthly house payment would be $1,237.50.

Estimate #2 (monthly debt)

A. Gross monthly income: $3,750.

B. Multiply by 38% (.38): $1,425.

C. Total monthly debt: $625.

D. Subtract line C from B: $800.

This estimate provides you with your maximum house payment.

Remember, to use your lower of the above two estimates when determining your monthly maximum mortgage payment.

The next step is to calculate your monthly mortgage payment for a 30 year, fixed rate mortgage. Click here for a monthly mortgage payment chart.