The 'How Much House Can I Afford'
Borrowing Power Calculator

To help you determine how much house you can afford, our calculator starts with a couple of primary pieces of information:

• Household income
• Monthly debts (for example: car payments, student loans, credit card payments)

**Please note you can always add other incomes or debts into the calculator to get a more accurate assessment.

Based on these two pieces of information, our calculator will work it's magic to determine how much house you may be able to afford. While we strongly encourage you to have a conversation with a Loan Officer to review your specific financial situation and needs, we hope that this tool will help you get started with the process.

Factors that contribute into the borrowing power calculation:

Income: Enter your total household income (you can also include a co-borrower) before tax.  In most cases, income from commissions, bonuses, overtime, tips, rental income, and child support can all be counted toward your annual income.

Debt: Include your (and your co-borrower's) monthly debts. Debts may include minimum monthly credit card payments, car payments, student loans, alimony/child support, etc.  Your total minimum monthly debt is divided by your gross monthly income to express your Debt-to-Income ration (DTI).  For a conventional loan, your DTI ration cannot exceed 36%.

Down payment: Our calculator will assume a 20% down payment, but there are plenty of financing options available, some for as little as 3% down (remember if you put less than 20% down you will be responsible for paying PMI - Private Mortgage Insurance - our calculator will give you an estimate for that too).

Loan Program: Never hurts to check out what a 15 or 20 year mortgage might look like. Who wouldn't want to pay their mortgage off sooner? (Just think of the savings in interest!)

Interest Rate: This is the interest rate for the loan. This field is pre-filled with an average rate for a 30-yr fixed mortgage for a well qualified borrower.

Property Taxes: This field is pre-filled with the average yearly property tax rate in Texas. This typically varies state by state and county by county.

Home Insurance: Most lenders will require insurance to provide protection for your home and personal property.

HOA Fees: Some neighborhood, condo and townhome owners are required to pay homeowners association dues (HOA).  These fees typically cover amenities and services within the neighborhood or building.

To learn more about your home purchasing power and to prequalify contact us.