Max Mortgage Calculator

Step-by-Step Guide to Using the Max Mortgage Calculator

Welcome to the Max Mortgage Calculator guide. This tool is designed to help you estimate the maximum mortgage amount you can afford based on various financial factors. Follow the steps below to use this calculator effectively.

Input Fields

1. Annual Gross Income ($): Enter your yearly income before taxes. This is a mandatory field, and the value must be between $1,000 and $1,000,000,000.
2. Monthly Debt Payments ($): Enter your total monthly debts, including car loans, credit cards, etc. This is a required field and should be between $0 and $1,000,000.
3. Down Payment ($): Enter the amount you will pay upfront as a down payment. This is a mandatory field and must be at least $0.
4. Annual Interest Rate (%): Input the interest rate for the mortgage. This field is required, with values ranging from 0.1% to 30%, with increments of 0.1%.
5. Loan Term: Select the desired loan term from the options provided (15, 20, or 30 years). This selection is required to proceed.
6. Annual Property Tax Rate (%): Enter the property tax rate as a percentage. This is a required field and should be between 0% and 10%, with increments of 0.01%.
7. Annual Home Insurance ($): Input the estimated yearly cost of home insurance. This is a required field and must be at least $0.

Result Fields

Once you input all the required data, the calculator will compute and display the following results:

1. Monthly Gross Income: This is your annual income divided by 12, showing how much you make on a monthly basis.
2. Maximum Monthly Payment: This value is calculated as 28% of your monthly gross income, representing the maximum monthly mortgage payment you can make.
3. Maximum Payment with DTI: The Debt-to-Income (DTI) ratio considers your monthly debts. The calculator uses this value to determine the maximum monthly payment, ensuring it doesn’t exceed 36% of your monthly income minus your monthly debts.
4. Monthly Property Tax: This figure represents the estimated monthly property tax payment based on your potential mortgage amount and the property tax rate.
5. Monthly Insurance: Your annual home insurance cost divided by 12, indicating the monthly insurance payment.
6. Maximum Mortgage Amount: The calculator accounts for your DTI, monthly insurance, and property tax to determine the greatest mortgage amount you can afford.
7. Total Home Price You Can Afford: This is the sum of the maximum mortgage amount and your down payment, reflecting the total home price you can afford to purchase.

Ensure that all input fields are filled correctly and observe the validation constraints to receive accurate results. Utilize this guide as a comprehensive resource to calculate your maximum mortgage capacity efficiently.