Maximum Mortgage

What is your maximum mortgage? That largely depends on your income and current monthly debt payments. This calculator collects these important variables and determines your maximum monthly housing payment and the resulting mortgage amount.

At INTEREST_RATE your maximum mortgage is LOAN_AMOUNT for your income of YOUR_ANNUAL_INCOME.

An annual income of YOUR_ANNUAL_INCOME provides for a maximum Principal, Interest, Taxes and Insurance (PITI) payment of LOAN_PITI. After taxes and insurance your principal and interest payment (PI) of LOAN_PI would pay for a LOAN_AMOUNT mortgage, with an interest rate of INTEREST_RATE and a term of TERM_IN_YEARS years. **GRAPH**
Maximum Mortgage Results
Annual income YOUR_ANNUAL_INCOME
Term TERM_IN_YEARS years
Interest rate INTEREST_RATE
Monthly housing expenses MONTHLY_HOUSING_EXPENSES
Monthly liabilities MONTHLY_LIABILITIES
Maximum housing payment (PITI) LOAN_PITI
Maximum principal & interest payment (PI) LOAN_PI
Maximum mortgage LOAN_AMOUNT
Your Income
  BorrowerCo-borrower
Salary SALARY SALARY_UNITS COBORROWER_SALARY COBORROWER_SALARY_UNITS
Commission COMMISSION COMMISSION_UNITSCOBORROWER_COMMISSION COBORROWER_COMMISSION_UNITS
Bonus BONUS BONUS_UNITSCOBORROWER_BONUS COBORROWER_BONUS_UNITS
Other OTHER_INCOME OTHER_UNITSCOBORROWER_OTHER_INCOME COBORROWER_OTHER_UNITS

Housing Expenses
Real estate taxes REAL_ESTATE_TAXES REAL_ESTATE_TAXES_UNIT
Hazard insurance HAZARD_INSURANCE HAZARD_INSURANCE_UNIT
Housing expenses HOUSING_EXPENSES HOUSING_EXPENSES_UNIT
Mortgage insurance MORTGAGE_INSURANCE MORTGAGE_INSURANCE_UNIT
Current Monthly Liabilities
  BorrowerCo-borrower
Auto loans AUTO_LOANS COBORROWER_AUTO_LOANS
Credit cards CREDIT_CARDS COBORROWER_CREDIT_CARDS
Installment loans INSTALLMENT_LOANS COBORROWER_INSTALLMENT_LOANS
Student loans STUDENT_LOANS COBORROWER_STUDENT_LOANS
Alimony & child support ALIMONY_CHILD_SUPPORT COBORROWER_ALIMONY_CHILD_SUPPORT
Other loans OTHER_LOANS COBORROWER_OTHER_LOANS
Other OTHER_LIABILITY COBORROWER_OTHER_LIABILITY

Qualify Calculation

Your LOAN_PITI maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

1. Monthly Income X LOW_DEBT_PITI_RATE = monthly PITI
    Which is: YOUR_INCOME X LOW_DEBT_PITI_RATE = QLFY_PITI_ONLY

2. Monthly Income X HIGH_DEBT_PITI_RATE - Monthly Liabilities = monthly PITI
    Which is: YOUR_INCOME X HIGH_DEBT_PITI_RATE - MONTHLY_LIABILITIES = QLFY_PITI_DEBT


Qualifying Mortgage Amounts for a Range of Interest Rates

**REPEATING GROUP**

Maximum Mortgage Definitions

Monthly income
Total monthly income from all sources. All income should be entered before taxes.
Monthly housing expenses
Your monthly housing expenses from the housing expenses worksheet. The items entered as housing expenses make up the taxes and insurance portion of your monthly PITI payment.
Monthly liabilities
Your monthly liabilities from the liabilities worksheet. Your monthly liabilities are used to calculate your maximum PITI.
Monthly housing payment (PITI)
This is your total principal, interest, taxes and insurance (PITI) payment per month. This includes your principal, interest, real estate taxes, hazard insurance, association dues or fees and principal mortgage insurance (PMI). Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

  1. Monthly Income X 28% = monthly PITI
  2. Monthly Income X 36% - Other loan payments = monthly PITI
Maximum principal and interest (PI)
This is your maximum monthly principal and interest payment. It is calculated by subtracting your monthly taxes and insurance from your monthly PITI payment. This calculator uses your maximum PI payment to determine the mortgage amount that you could qualify for.
Start interest rates at
The current interest rate you could receive on your mortgage. This is used as the starting point for displaying a range of interest rates and the resulting mortgage amount.
Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.


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