If you have no idea about whether you can afford a new home or not,
then use this calculator first. Its a quick and dirty way to determine
your total financial circumstances and outlook. Both your mortgage
company and your lender will use these mortgage ratios to determine
both your income and your debt. This calculator calculates three ratios
called the Housing Ratio , the Loan-to-Value (LTV) Ratio , and the
Debt Ratio .
Instructions:
First, enter the number of payments you expect to make. A 15 year
mortgage is (15 x 12) or 180 payments, conversely a 30 year mortgage
is (30 x12) or 360 payments. Enter an interest rate. You can enter
the interest rate as a percentage or as a decimal. Enter the purchase
price of the home. Enter the amount you plan to borrow, also called
the principal or the amount of the mortgage. All the rest of figures
are MONTHLY amounts. Enter your Gross monthly income, real estate
taxes, homeowners insurance, mortgage insurance, and any condominium
or association dues. Finally, enter your monthly car payments, alimony
or child support payments, credit card payments, and any other loan
payments you make. Press the compute button and the numbers will
be calculated and displayed in the table below the buttons. This
is a JavaScript based calculator.
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