Go To Articles Directory Home Page
To get the current article, - See Below (at the bottom of the page) -.
For top news titles, see below.
Web sites and videos listed in this page are frequently updated.
If you find that this page is useful (quality of web sites, images and videos, ...), you can add it to your favorites.
Bookmark Page !
Understanding Affordability Mortgage Calculators
The borrower wants to know how much can he borrow. First, he went to many website to use the Affordability Mortgage Calculators. He got a quote from the calculator. Second, he asks a mortgage lender. The mortgage lender gave him a quote. Finally, he asks another mortgage lender. The latest mortgage lender gave him another quote which does not match the previous quotes. Nobody is at fault here. Each lender has unique criteria on how much can you qualify for the maximum mortgage loan.
Here are the three common factors to qualify for mortgage loan:
Maximum Monthly Mortgage Payment
The borrower earns 0,000 annual gross income. And, he pays ,500 monthly obligations, ,500 annual property tax, and 0 annual home insurance. Also, he is contemplating on a 6.5% interest rate and 30 year mortgage. Our affordability mortgage calculator uses GDS 32%, TDS 40%, and Loan to Value Ratio 75%.
Here is the GDS calculation:
Here is the TDS calculation:
The maximum monthly mortgage payment is the lesser between GDS and TDS. Your maximum monthly mortgage payment is ,183.33, since TDS is lesser than GDS.
Maximum Mortgage Amount
Here is the Annuity calculation:
The maximum mortgage amount comes to 5,426.96
Loan to value ratio (LVR)
The usual Loan to Value ratio for the first time borrower is 75%. Loan to Value Ratio tells us that the borrower can borrow 0,569.28 with 5,142.32 down payment (0,569.28 Loan to Value ratio - 5,426.96 maximum mortgage amount).
Here is LVR calculation:
With Affordability Mortgage Calculators, you can easily determine maximum monthly mortgage payment, and maximum mortgage amount that you qualify.
About the Author: Dennis Estrada is a webmaster of Mortgage Calculators which calculate the mortgage payments, and compare different interest rates.