How Much Can I Borrow - Calculate Now
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How Much Can I Borrow?

How Much Can I Borrow Calculator will use your current income to determine the maximum loan that you qualify for under standard underwriting criteria.
     
Annual Salary $
Other Income $
Property Tax $
Property Insurance $
Monthly Debt Payments $
Interest Rate %
Loan Length years
 

 
 
 

For a given income and loan characteristics (e.g. interest rate), this calculator calculates the maximum loan amount you can qualify for. The results indicate the estimated maximum monthly payment and the maximum mortgage amount under standard lending guidelines.

To calculate the maximum mortgage amount you can qualify for we use two tests typically used by lenders: income test and debt test. According to the income test, your monthly payment (including taxes and insurance) cannot exceed 28% of your income. According to the debt test, your monthly home payment plus minimum monthly debt payments cannot exceed 36% of your income. To be conservative, we use the lower number from the two tests as an estimate of the maximum loan that you can qualify for.

Typically if your loan-to-value (LTV) is more than 80%, the lenders will require that you obtain private mortgage insurance (PMI), however this calculator does not account for PMI. The reason is that today many lenders offer alternatives programs like 80:10:10 or 80:20 which do not require you to pay PMI.

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