Understanding Mortgage Calculations and Home Affordability

When considering a home purchase, it's essential to accurately estimate your monthly mortgage payments based on key factors: the home's sale price, loan term, down payment percentage, and interest rate. Our mortgage calculator takes these variables into account, including Private Mortgage Insurance (PMI) for down payments less than 20%, and local property taxes, to provide a comprehensive monthly payment estimate.

Purchasing a home is a significant financial commitment, whether it's your first home, your dream home, or an investment property. According to the Federal Reserve, the median sales price of homes in the U.S. has been steadily rising, making it crucial to understand what you can afford. Our team of real estate professionals is dedicated to helping you find the ideal property tailored to your unique needs.

Lenders use your debt-to-income ratio (DTI) to assess your ability to manage monthly payments and repay debts. This ratio includes your housing costs, car payments, credit card bills, student loans, and other installment debts. Keeping your DTI ratio in check is vital, as taking on additional debt before purchasing a home can affect the loan amount you're eligible for. The Consumer Financial Protection Bureau (CFPB) recommends maintaining a DTI ratio below 43% to improve your chances of securing a mortgage and managing your finances effectively.