Mortgage Loan Affordability Calculator

Use SFC Finance mortgage loan affordability calculator to check how much mortgage loan you can afford. 

Use This Mortgage Affordability Calculator

? Your monthly income after all deductions. This is the amount you actually receive in your bank account or as cash each month.
? Monthly expenses excluding housing-related costs. Think of regular expenditures like groceries, transportation, entertainment, subscriptions, etc.
Housing costs typically include mortgage or rent, property taxes, homeowner's insurance, utilities, and homeowner's association fees.
? An estimate of the annual property tax rate for the home you're considering. This rate is often a percentage of the home's assessed value and can vary based on location and property type.
? The expected monthly premium for insurance on the home. This insurance covers potential damages to the property, and its cost can vary based on the home's value, location, and coverage levels you select.
? Monthly fees paid to a homeowner's association, if applicable. HOAs manage and maintain common areas in certain residential communities and may impose these fees on homeowners.
? The annual percentage rate at which interest will accrue on your mortgage. This rate can be fixed (unchanging over time) or variable (may change based on market conditions).
? The length of time over which you'll repay the mortgage. Common terms are 15 or 30 years, but other durations are possible. Longer terms usually result in smaller monthly payments but more interest paid over the life of the loan.

Your Mortgage Loan Affordability Results:

Affordable Monthly Mortgage Payment:

Total Affordable Mortgage Amount:

Here is the Mortgage Loan Affordability Formula used in this calculator:

Affordable Mortgage Payment = Net Monthly Income − Non-Housing Monthly Expenses − Other Housing Expenses

Example Scenario for an Affordability Calculation

Let’s say you have a net monthly income of $6,000 and $1,500 in non-housing expenses. Using the mortgage loan affordability calculator above, you would input the following values:

  • Net Monthly Income: $6,000
  • Non-Housing Expenses: $1,500
  • Property Tax Rate: 1.25%
  • Homeowner’s Insurance: $100/month
  • HOA Fees: $200/month
  • Interest Rate: 5%
  • Loan Term: 30 years
  • Down Payment: $20,000

After calculating, your estimated affordable loan amount would be $628,645, which means you can afford a home valued at $648,645, including the down payment.

Here’s a quick breakdown:

  • Affordable Loan Amount: $628,645
  • Total Home Value (including down payment): $648,645
  • Estimated Monthly Payment: Varies based on selected terms and interest

This example highlights how key factors like income, expenses, and interest rates can impact your home affordability. Try out different values in the mortgage loan affordability calculator to see what you can comfortably afford!