Wondering How Much Mortgage You Can Afford? Here’s How to Calculate It

Many people are aware of the financial commitment that is involved when investing in a home, but what that amounts to is different for every person. From what you can afford to what a lender will allow, there are plenty of details involved in determining the right home for you. If you’re not quite sure what the right price is, here’s how to approach home ownership and determine your debt-to-income.

Utilize the Calculators on My Website

Visit my website at www.JPCookAZRealEstate.com.  Click on ‘Buyers’ then utilize the Affordability Calculator, which will tell you how much house you can afford with your current income and expenses.  You can also utilize the Mortgage Calculator to determine how much your monthly house payment will be.

Do it Yourself:  Calculating Your Debt-To-Income Ratio

You may not know what your DTI ratio is, but it has a lot to with how much home you can afford. In order to calculate this amount, add together all the debts you owe each month and divide them by your monthly pre-tax income. For example, if your credit card is $150 and your rent is $900, your debt amount would be $1050. Divide this amount by your income, say $2500, to get 0.42. This means your DTI ratio is 0.42 or 42%.

What Your DTI Means

While a DTI in the high 20s or low 30s is good, anything that hovers above 43 percent may serve as a red flag to the lender. The lower your DTI ratio is, the more likely it is that a lender will approve your mortgage application since you’ll have the disposable income to deal with financial hurdles. If your dream home has you hovering close to this amount, it may be a sign that it’s a bit out of reach.

How Do You Want To Live?

It’s quite common to be taken over when you find your dream home and decide to commit. However, buying a home is a huge financial commitment, and if you’re buying more than you can afford it may drain your well-being over time. Instead of diving in, determine other expenses that are likely to come up in the next few years, whether it’s travel, a child or a new car. It’s important to have the home you want and budget when buying it, but you’ll still need to financial wiggle room in case something comes up.

There are a lot of factors involved in determining how much house you can afford, but by calculating your DTI ratio and being aware of your spending plans, you’ll be well on your way to an ideal price range.  Give me a call for more information – J.P. Cook – 602-320-4253.

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3703 N Wintergreen Way Avondale, AZ 85392

$455,000

4 Beds

2 Baths

2,223 SqFt

Status Active

MLS # 6648052

Property Type Single Family Residence

Price Type --

Explore this extraordinary find in Garden Lake Estates, with one of the largest lots in the community. The backyard, with an elongated covered patio, finished concrete work, elegant palm trees, and finished with rock, awaits your personal touch to make it truly yours. Step inside to an open and airy interior, highlighted by an upgraded kitchen with quartz countertops, a charming bay window, and brand-new stainless steel appliances. Freshly painted cabinets and a spacious kitchen island with a breakfast bar enhance the overall allure. The openness continues into the primary suite with vaulted ceilings, two spacious closets, separate bathtub and shower, dual sinks, private toilet room, and a garden-style tub for your relaxation. Don't miss this.

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2339 N Wind Drive Pinetop, AZ 85935

$455,000

3 Beds

2 Baths

1,790 SqFt

Status Active

MLS # 6653087

Property Type Townhouse

Price Type --

GREAT LOCATION in Pinetop Country Club. FURNISHED townhome tucked back overlooking the common area w/ tons of tall Ponderosa Pine trees. True pride of ownership in this 3 bed - 2 bath home. You are greeted with a entry that opens into a large great room, open concept, vaulted ceilings with bamboo accent, gas fireplace, huge kitchen with tons of cabinets & counterspace + stainless steel appliances. This home has a split bedroom floor plan. There is a large pantry w/ a lovely laundry room with wonderful space to work. The Master/Primary overlooks the tall pine trees with amazing privacy. The closet is huge and the bath has lots of space with 2 vanities. The 2 other bedrooms, one has a desk with a fold out couch plus a fold out twin bed. The deck is incredibly spacious - READ MORE Everything else in the home AND garage STAYS! This home boasts of beautiful high quality wood laminate floors throughout (NO carpet)! This cabin in the woods comes fully furnished. What you see when you view the home, is what you get. It is move in ready. Check out the cupboards for dishes, etc. The great room has a ceiling to floor stone gas fireplace. Beautiful window coverings throughout! The garage is oversized and there is also an extra parking spot. Imagine living in the White Mountains of Arizona where you have 4 beautiful seasons and where you can breathe in the fresh mountain air and enjoy the 40 lakes and over 600 miles of rivers and streams. In addition to the amazing fishing, this area has one of the most extensive trail systems in the southwest for hiking, biking, horseback riding, quadding and more. Sunrise Ski Resort is also just 40 minutes away with 3 beautiful mountains to ski, snow board or sled. If shopping is your interest, you will love the antique stores and the multitude of arts and craft shows that happen in the summer. The music festivals have something to fit everyone's enjoyment. Do you love to golf? There are 7 amazing golf courses, 3 that are public. The White Mountains, where this home/cabin is the best kept secret of Arizona! Come and explore and enhance your living! Pinetop-Lakeside was also voted 'Best Cabin Region in the U.S... Embrace the MAGIC!

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1849 W 21st Avenue Apache Junction, AZ 85120

$455,000

3 Beds

2.5 Baths

1,885 SqFt

Status Active

MLS # 6671957

Property Type Single Family Residence

Price Type --

THIS GORGEOUS 3 BED 2.5 BATH HOME SITS IN THE GATED COMMUNITY OF BELLA CORONA, WITH THE MAJESTIC SUPERSTITION MOUNTAINS AS A BACKDROP. THE COMMUNITY OFFERS A SPARKLING POOL, BASKETBALL COURT, AND LUSH GREENBELTS . INSIDE, AN OPEN FLOOR PLAN SEAMLESSLY CONNECTS THE DINING AREA, KITCHEN, AND LIVING ROOM. THE STYLISH KITCHEN BOASTS A LARGE CENTER ISLAND, QUARTZ COUNTERTOPS, AMPLE CABINETRY, AND PENDANT LIGHTING. THE UPPER-LEVEL HOUSES ALL BEDROOMS AND LAUNDRY, INCLUDING A SPLIT MASTER WITH A SPACIOUS WALK-IN CLOSET , SUPER BATH, & PRIVATE BATHROOM. THE BACKYARD BOASTS A COVERED PATIO PERFECT FOR RELAXATION OR ENTERTAINING. THE GATED COMMUNITY, HEATED POOL, SPA, AND DOG PARK. Buyers & buyers agents are to verify all facts & figure ***5K SELLER CONTRIBUTIONS TO BUYERS CLOSING COST ***

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1102 W Glendale Avenue Phoenix, AZ 85021

$455,000

3 Beds

2.5 Baths

1,928 SqFt

Status Active

MLS # 6681045

Property Type Townhouse

Price Type --

Immerse yourself in the vibrant energy of Uptown Phoenix with this charming townhome nestled in a gated community. Boasting 3 bedrooms, 2.5 baths, and vaulted ceilings in the living room, this home exudes spaciousness and style. Located right next to the community pool, relaxation and leisure are just steps away. Whether you're starting your homeownership journey or seeking an excellent rental opportunity, this townhome is the perfect fit. Enjoy the dynamic atmosphere of Uptown and North-Central Phoenix, where trendy eateries, boutique shops, and cultural attractions await your exploration. With quick access to highways, commuting is a breeze, ensuring you're never far from the excitement of the city. Don't miss out on this exceptional opportunity to own a piece of Uptown allure Immerse yourself in the vibrant energy of Uptown Phoenix with this charming townhome nestled in a gated community. Boasting 3 bedrooms, 2.5 baths, and vaulted ceilings in the living room, this home exudes spaciousness and style. Located right next to the community pool, relaxation and leisure are just steps away. Whether you're starting your homeownership journey or seeking an excellent rental opportunity, this townhome is the perfect fit. Enjoy the dynamic atmosphere of Uptown and North-Central Phoenix, where trendy eateries, boutique shops, and cultural attractions await your exploration. With quick access to highways, commuting is a breeze, ensuring you're never far from the excitement of the city. Don't miss out on this exceptional opportunity to own a piece of Uptown Phoenix's allure. Book a tour today and experience the unmatched charm of this delightful townhome.

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