Mortgage Preapproval Calculator

This Mortgage Preapproval Calculator helps users estimate the maximum loan amount and home price they can afford based on their income, debts, credit score, down payment, interest rate, and loan term.

Use Our Mortgage Preapproval Calculator

Using the Mortgage Preapproval Calculator

The Mortgage Preapproval Calculator is designed to help you estimate how much you can afford to borrow when purchasing a home. Follow the step-by-step guide below to make the most out of this tool.

Step 1: Enter Your Annual Gross Income

Annual Gross Income ($): Begin by inputting your yearly income before taxes. This figure should be between $1,000 and $10,000,000. This field is required to proceed further.

Step 2: Enter Your Monthly Debt Payments

Monthly Debt Payments ($): Input the total amount you pay monthly toward debts such as car payments, credit card payments, student loans, etc. The acceptable range is between $0 and $100,000, and this information is also required.

Step 3: Select Your Credit Score Range

Credit Score Range: Choose the option that best represents your credit score. The categories are:

  • Excellent (740+)
  • Good (700-739)
  • Fair (660-699)
  • Poor (620-659)

This selection is mandatory and will influence your maximum loan amount.

Step 4: Enter Your Down Payment Amount

Down Payment ($): Specify the amount you have available for a down payment on the property. The minimum value should be $0, and this is a required field.

Step 5: Enter the Estimated Interest Rate

Estimated Interest Rate (%): Enter the current market interest rate you’re expecting to receive. The value should be between 0.1% and 25%, and you can enter this in increments of 0.1%. This field is required to proceed.

Step 6: Select the Loan Term

Loan Term: Choose your preferred duration for the loan repayment. The available options are:

  • 30 Years
  • 20 Years
  • 15 Years

This information is necessary to calculate the maximum loan amount.

Step 7: Review Your Results

Once all inputs are provided, the calculator will output several key figures:

  • Maximum Monthly Payment: Based on 28% of your monthly income.
  • Maximum Loan Amount: The largest loan amount you can qualify for, considering your debts and credit score.
  • Maximum Home Price: The highest home price you can afford, which includes your down payment.
  • Down Payment Percentage: Your down payment as a percentage of the maximum home price.
  • Debt-to-Income Ratio: Represents the percentage of your income used to pay debts.

Analyze these results to make informed decisions about your mortgage preapproval process.