This calculator is used to determine, from a lender's point of view, the amount of money that a prospective homeowner can comfortably borrow, based on factors like such as income, existing debt, etc. This can be a very helpful and insightful tool for the borrower.

The default entries provided in the calculator show a loan of undetermined value with a 4.75% interest rate, a 30-year term and a down payment of 10%. Some of the Financial Analysis results calculated are as follows: the actual front ratio is 25%; actual back ratio is 37%; a maximum affordable home value of $328,100.00; maximum monthly debt payments of $910; the maximum loan that borrower can afford is $295,300; a monthly principal and interest (P&I) payment of $1540.80 and the down payment is $32,800.

The front ratio (or housing payment ratio) compares the total mortgage payment to monthly income; back ratio (or total debt ratio) compares the sum of all monthly debts, including mortgage payment and all other monthly obligations, to the monthly income.

To use the calculator, enter the following information:

Mortgage Information: Down Payment (choose dollars or percentage), Interest Rate, Length, Estimated Front Ratio and Estimated Back Ratio.
Income Information: up to 5 different sources.
Debt Payment Information: Auto Loans, Student Loans, Installments, Revolving Accounts and Other Debt.
Taxes and Insurance Information (in dollars or percentage): Annual Taxes, Annual Insurance and Annual PMI.

The calculator will compute the following information:

Monthly Principal and Interest Monthly Debt Payments
Monthly Real Estate Taxes Actual Front Ratio
Monthly Insurance Actual Back Ratio
Monthly PMI Loan Amount
Total Monthly Payments Down Payment
Monthly Income Home Value

The calculator can also produce a PDF output file for download to your computer.

Input Information
Loan Information
Down Payment :
Interest Rate : (%)
Length : (Yrs)
Estimated Front Ratio : (%)
Estimated Back Ratio : (%)
Income Information Debt Payment Information
Income 1 : ($) Auto Loans : ($)
Income 2 : ($) Student Loans : ($)
Income 3 : ($) Installment : ($)
Income 4 : ($) Revolving accts : ($)
Income 5 : ($) Other Debt : ($)
Taxes And Insurance Information
Annual Taxes :
Annual Insurance :
Annual PMI :
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Financial Analysis
Monthly Principal and Interests : $1,540.80
Monthly Real Estate Taxes : $250.00
Monthly Insurance : $125.00
Monthly PMI : $123.07
Total Monthly Payments : $2,038.87
Monthly Income : $8,000.00
Monthly Debt Payments : $910.00
Actual Front Ratio : 25 %
Actual Back Ratio : 37 %
Amount : $295,300.00
Down Payment : $32,800.00
Home Value : $328,100.00

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