My online mortgage calculator is designed to help you estimate your monthly mortgage payment. It is simple to use. Enter the home value, your down payment amount, and your qualified mortgage interest rate.
Ready to buy a home? It’s easy to figure out how much house you can afford!
Enter Your Mortgage Information
Using an online mortgage calculator will help you quickly and easily determine how much house you can afford.
How to Use Our Mortgage Calculator
Start by entering the four values requested on the form. There is no need to enter symbols ($, %). The form already understands the value.
- Home Value: This is the listing price and/or the agreed upon purchase price as negotiated between the buyer, seller, and realtor.
- Down Payment: This is the dollar value representing the percentage you plan to pay in advance toward the home value. General recommendations are usually at least 10%. I recommend putting down as much as possible without draining your emergency fund.
- Interest Rate: This is the percentage of the loan your mortgage lender is requiring to loan you the money. If the rate is 4.5% simply enter 4.5 in the calculator.
- Length of Mortgage: Here enter how many years the mortgage loan is for. Banks are quick to offer 30 year mortgages. I recommend keeping it at 20 years or less.
Once you’ve entered the values click calculate to see your estimated monthly payment.
Think Beyond the Monthly Mortgage Payment
The monthly mortgage payment is only one expense. It is important to consider ALL the costs associated with having a mortgage.
When you’re estimating how much house you can afford, don’t forget to take into account other expenses, such as:
- Property Taxes
- Utilities (gas, electric, water, sewage, etc)
- Homeowners Insurance
- Emergency repairs
The list could go on and on.
Owning a home is a blessing and wonderful privilege – when you’re ready. Trust me, even though my wife and I love our house, there are definitliy times I wish I could call a landlord.
If you’re not ready to purchase a home, there is nothing wrong with renting a couple more years.
Listen to my personal experience of transitioning from renting to buying:
I Want to Pay Off My Mortgage, but I’m Remodeling My House Instead.
Make a Budget Before Buying a Home
Your home should be a blessing, not a curse. One way to ensure that is planning ahead.
Take the time to sit down and go over your finances with a fine tooth comb. It will pay dividends in the future.
I highly recommend the You Need A Budget software and budgeting system to gain total control of my money. You can use whatever software works for you, though. Even pencil and paper if that’s your thing.
You Need A Budget (YNAB) teaches four basic rules for managing your money:
- Give Every Dollar A Job
- Embrace Your True Expenses
- Roll With The Punches
- Age Your Money
They have a beautiful, easy to use interface.
Check out some of our other recommended resources.
Join the Cheerful Money Community
I’ll shoot ya some free tools.