Mortgage Qualification Calculator

Do you feel you have your ducks in a row by doing your research and getting your finances in order? Or, maybe not quite sure? Plug in your figures in the mortgage qualification calculator so you can get an idea if you are ready to qualify for a loan. Your debts play a big part as to how much you may qualify for a mortgage loan. According to NAR's research, it clearly indicates that the continued rise in student debt along with a weak labor market has a long-term impact on the ability of first-time homebuyers, particularly lower income consumers, to qualify for mortgages. Many of these potential borrowers find a significant portion of their total monthly debt is comprised of student loan payments.
 

The monthly mortgage qualification calculator is a beneficial tool to use once you have determined what loan type options you have available to you and while you are in the process of buying a home.
 
Although homes may be priced the same, private mortgage insurance, property taxes, hoa fees, flood insurance, and other factors will fluctuate your monthly mortgage payment. 
 
Yout debt to loan ratio will also need to be adjusted depending on the loan and lender you choose to buy the loan from.   

Types of Loans

The type of loan you will try to get pre-approved for will determine the homes that may qualify for it.
pre qualifygetting prequalified for a mortgageget prequalified for a home loan

MORTGAGE QUALIFICATION CALCULATOR EXPLANATIONS

PURCHASE PRICE
The price of the home you would like to purchase.
 
DOWN PAYMENT
This is the amount of money you will put towards a down payment on the house. Make sure you still have cash left over after the down payment to cover unexpected repairs or financial emergencies.
 
LOAN AMOUNT
The actual loan amount after the down payment has been applied.
 
INTEREST RATE
This is the interest rate for the loan you will receive. It is pre-filled with the current 30-yr fixed average rate on Zillow Mortgage Marketplace.
 
LOAN TERM
This is the length of time you choose to pay off your loan (e.g., 30 years, 20 years, 15 years, etc.)
 
MONTHLY PRINCIPAL AND INTEREST
The combine amount of amortized monthly payment and interest.
 
ANNUAL PROPERTY TAXES
The mortgage payment calculator includes estimated property taxes. The value represents an annual tax on homeowners' property and the tax amount is based on the home's value.
 
ANNUAL HOMEOWNERS INSURANCE
Commonly known as hazard insurance, most lenders require insurance to provide damage protection for your home and personal property from a variety of events, including fire, lightning, burglary, vandalism, storms, explosions, and more. All homeowner's insurance policies contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off your property.
 
PRIVATE MORTGAGE INSURANCE (PMI)
Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price. It protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Also known as PMI (Private Mortgage Insurance).
 
HOA DUES
Typically, owners of condos or townhomes are required to pay homeowners association dues (known as HOA fees), to cover common amenities or services within the property such as garbage collection, landscaping, snow removal, pool maintenance, and hazard insurance.
 
PITI
Is an acronym for a mortgage payment that is the sum of monthly principal, interest, taxes, and insurance.
 
ANNUAL GROSS INCOME
This is the combined annual income for you and your co-borrower. Include all income before taxes, including base salary, commissions, bonuses, overtime, tips, rental income, investment income, alimony, child support, etc.
 
MONTHLY DEBT
Include all of you and your co-borrower's monthly debts, including: minimum monthly required credit card payments, car payments, student loans, alimony/child support payments, any house payments (rent or mortgage) other than the new mortgage you are seeking, rental property maintenance, and other personal loans with periodic payments. Do not include, credit card balances you pay off in full each month, existing house payments (rent or mortgage) that will become obsolete as a result of the new mortgage you are seeking.
 
MAXIMUM QUALIFYING AMOUNT
The net amount of what you can qualify for base on your gross income and debt payment.
 
DEBT TO INCOME (DTI)
Your DTI is expressed as a percentage and is your total "minimum" monthly debt divided by your gross monthly income. The conventional limit for DTI is 36% of your monthly income, but this could be as high as 41% for FHA loans. A DTI of 20% or below is considered excellent.