Maximum Mortgage (Prime B)

What is your maximum mortgage? That largely depends on your income and current monthly debt payments. This calculator collects these important variables and determines your maximum monthly housing payment and the resulting mortgage amount.

Javascript is required for this calculator. If you are using Internet Explorer, you may need to select to 'Allow Blocked Content' to view this calculator.

For more information about these financial calculators please visit: Financial Calculators from KJE Computer Solutions, Inc.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

Financial Calculators from
Dinkytown.net

At KJE2 your maximum mortgage is KJE1

Maximum monthly payment (PITH) KJE3

*indicates required.

Start interest rates at:*This entry is required.Enter an amount between 0% and 25%

Amortization in years:*This entry is required.

Monthly income:

Total $0.00

Monthly liabilities:

Total $0.00

Monthly housing expenses:

Total $0.00

**FIG_GRAPHTITLE** Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Qualifying Mortgage Amount for a Variety of Interest Rates

Definitions

Monthly income

Total monthly income from all sources. All income should be entered before taxes.

Monthly housing expenses

Your monthly housing expenses from the housing expenses worksheet. The items entered as housing expenses make up the taxes and insurance portion of your monthly PITH payment.

Monthly liabilities

Your monthly liabilities from the liabilities worksheet. Your monthly liabilities are used to calculate your maximum PITH.

Monthly housing payment

This is your total principal, interest, taxes, heat and 50% of your condo fee (PITH). Maximum monthly payment is calculated by taking the lower of these two calculations:

Monthly Income X 39% = monthly PITH
Monthly Income X 50% - Other loan payments = monthly PITH

This is your total principal, interest, taxes, heat and 50% of your condo fee (PITH). Maximum monthly payment is calculated by using the following calculations for the appropriate circumstance:

Traditional Lending: (A lending)
Monthly Income X 39% = monthly PITH (GDS) Monthly Income X 44% - Other loan payments = monthly PITH (TDS)

Semi-Traditional Lending: (Prime B)
Monthly Income X 45% = monthly PITH (GDS) Monthly Income X 50% - Other loan payments = monthly PITH (TDS)

Note: Some semi-traditional lenders GDS/TDS ratios may vary slightly.

Maximum principal and interest (PI)

This is your maximum monthly principal and interest payment. It is calculated by subtracting your monthly taxes and insurance from your monthly PITH payment. This calculator uses your maximum PI payment to determine the mortgage amount that you could qualify for.

Start interest rates at

The current interest rate you could receive on your mortgage. This is used as the starting point for displaying a range of interest rates and the resulting mortgage amount.

Amortization in years

The number of years over which you will repay this loan. The most common mortgage amortization is 25 years.

Condo Fees

Condo fees, if any, for the home purchase. Only 50% of this fee is included in your monthly housing expenses when figuring your maximum mortgage.

Amansad Financial Services Inc.

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.