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

Wondering How Much Mortgage You Can Afford? Here's How to Calculate ItMany 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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15860 E Rio Verde Drive Scottsdale, AZ 85262

$55,000,000
9 Beds
7 Baths
14,997 SqFt
Status Active
MLS # 6471198
Property Type Single Family - Detached
Price Type --
Located on approx. 237 acres on the edge of Scottsdale, this one-of-a-kind property perfectly captures the essence of the Southwest. Stunning 360-degree views combine with the peace and solitude of the Sonoran Desert to create a private oasis while all the best of Scottsdale's amenities are just minutes away. The 8,700 SF main residence is modeled after an Argentinian estancia and is grand, yet comfortable. Additional amenities include a large greenhouse and potting shed, tennis court, pool and shooting range. Additional buildings include a 1,900 SF guest house, a 1,500 SF caretakers' cottage and a 2,800 SF office/art museum. World-class equestrian facilities include a six-stall stable, 16-stall mare motel, numerous corrals, pastures and several outbuildings. Plentiful water with two

20568 N 112th Street Scottsdale, AZ 85255

$32,000,000
7 Beds
10 Baths
17,267 SqFt
Status Active
MLS # 6413286
Property Type Single Family - Detached
Price Type --
A Dream Team Comes Together Like a Symphony to Create a Custom Estate That is a Work of Art, introducing Ellington Heights in Silverleaf''There is no art when one does something without intention.'' -- Duke Ellington.Without a doubt the King of Jazz would consider Ellington Heights--a sleek and stylish gem--a superb work of art. Nestled in the sun-kissed upper canyon of Silverleaf, an exclusive enclave in Scottsdale, Arizona, the design for this magnificent estate collected inspiration from the social, artistic and cultural dynamism of the Roaring Twenties era. Further, the design journey for this modern desert prairie-style home, included finding perfect harmony with its Sonoran surroundings.(see 'more' now)

7265 N 40th Street Paradise Valley, AZ 85253

$30,600,000
5 Beds
7 Baths
18,000 SqFt
Status Active
MLS # 6346005
Property Type Single Family - Detached
Price Type --
Amethyst is the crown jewel of Crown Canyon situated above all other homesites. This 5 acre parcel awaits an architectural masterpiece to capture the most prolific views in the community. The experienced team at BedBrock Developers is prepared to fully design and build your custom dream home on this impressive mountain hillside. In-house architect Stratton Andrews has designed an 18,000 square foot showcase home custom to this lot demonstrating the endless possibilities within this homesite.''The breathtaking Amethyst homesite itself ignited the inspiration for this architectural masterpiece. The design flows with the topography allowing 270 degree views of the valley, Camelback Mountain and Piestewa Peak, while immersing the homeowner in the natural beauty of the desert'' says the

5247 N Invergordon Road Paradise Valley, AZ 85253

$30,000,000
7 Beds
13 Baths
13,364 SqFt
Status Active
MLS # 6447698
Property Type Single Family - Detached
Price Type --
Introducing ''The Royal Chateau'', an exquisitely remodeled estate (completed May 2022)! Boasting 7 bedrooms, 13 bathrooms with sweeping views of Camelback Mountain, this home is sure to please with only the highest level of finishes. The main residence offers nearly 10,000 sf of luxury interior living with 2 separate guest houses. This custom residence includes a custom 600 Bottle Wine Cellar, 7 Car Garages w/ AC, Chef's Kitchen w/ Dual Sinks, custom built-in Subzero Fridge & Freezer, and large walk-in pantry with appliances. Featuring a state-of-the-art home theater, home office with views of Camelback, parlor with wet bar & custom woodwork throughout the entire home. Guests may stay in either of the 2 guest casitas and enjoy the several outdoor entertaining areas throughout the property

20958 N 112th Street Scottsdale, AZ 85255

$28,000,000
7 Beds
8 Baths
13,617 SqFt
Status Active
MLS # 6375239
Property Type Single Family - Detached
Price Type --
Welcome to ''The Aerie'', perched high in the McDowell Mountains in Scottdale's most exclusive community of Silverleaf sits this one of a kind masterpiece with unmatched views of the valley below. Thoughtfully designed by Erik Peterson of PHX Architecture and built with the ultimate in perfection by Paragon Custom Homes into a true work of art, this brand new desert contemporary home is an amazing estate. From the open great room which leads to the designer kitchen and hidden catering kitchen to the thoughtfully designed entertainment zone, and the palatial master wing this home has it all. Embodying a true indoor outdoor lifestyle, entertaining spaces flow to the beautiful outdoors all with amazing views of the valley below.

11235 E Wingspan Way Scottsdale, AZ 85255

$24,220,000
6 Beds
8.5 Baths
11,556 SqFt
Status Active
MLS # 6362093
Property Type Single Family - Detached
Price Type --
An artful masterpiece, this stunning estate was recently completed in July of 2021 by Salcito Custom Homes. Grandly positioned on 4.67 acres on one of the best homesites in Silverleaf, this home sits prominently in the iconic ''saddle'' of the Upper Canyon Summit in Silverleaf. Exuding warmth and sophistication with a unique French Modern style and architecture thoughtfully designed by Dale Gardon, this regal home captures the spectacular views of the Silverleaf Golf Course and the Valley throughout the home. The garages are perfect for a car collector with capacity for 11 cars. The superb interiors, designed in collaboration with Rebecca Salcito feature distinctive elements such as a fireplace carved from marble to hand-blown glass chandeliers, custom artwork

6044 N 44th Place Paradise Valley, AZ 85253

$22,500,000
4 Beds
7 Baths
10,656 SqFt
Status Active
MLS # 6378747
Property Type Single Family - Detached
Price Type --
Welcome to this one of a kind single level HILLTOP estate with 360 degree views- As you enter the gated circular drive and approach the spectacular entry foyer you'll be amazed by the height of the ceilings and walls of glass overlooking city & mountain views, resort sized living room, generous use of stone, marble and slab granite throughout, beautiful warm and timeless finishes. formal dining room with city views , complete bar w ice maker/dishwasher, 10 ft burled redwood doors and cabinetry throughout, West Wing features -Powder room, Luxurious primary suite with coffee bar, unreal views, 2 baths with 2 large paneled closets, granite showers, fireplace , study with wood paneled ceilings, bookshelves and workroom, 1000 sq foot gym- w bath & closet- serves as multi purpose,

11269 E Moonlight Canyon -- Scottsdale, AZ 85255

$21,500,000
7 Beds
9 Baths
11,530 SqFt
Status Active
MLS # 6384286
Property Type Single Family - Detached
Price Type --
Renowned architect Bing Hu is creating a masterpiece in the Upper Canyon of the prestigious and highly acclaimed Silverleaf community. This 11,530 SF estate is a modern adaptation of the Prairie style of architecture, perfectly situated sitting on the high foothills of the McDowell Mountains with panoramic city lights, mountain and valley views. The superb quality of the finishes and the amenities included are sure to please the most discerning, certainly everything you'd expect in a home of this stature: green building materials and technologies, state of the art automation throughout, Sonos Surround Sound entertainment theater, Gaggenau ''Art of the Kitchen'' custom creation and more. Added opportunity is the GOLF MEMBERSHIP AVAILABLE with this home. Creating a masterpiece

10719 E Rimrock Drive Scottsdale, AZ 85255

$21,200,000
6 Beds
8 Baths
13,114 SqFt
Status Active
MLS # 6455254
Property Type Single Family - Detached
Price Type --
You may obtain a Silverleaf Golf Membership through this purchase. Warm and welcoming, nestled on a flat pad, not on a steep-driveway or below street-grade. The motor court, detached guest home, front and rear yard, all flow without any elevation changes. Secondary rooms, second wet bar and additional flex rooms live above. Perched on McDowell Mountains, offering an exclusive 'front row seat elevation' to the spectacular sprawling and vibrant golf course, twinkling city lights, plus captivating near/far mountain views. Flawlessly crafted and meticulously maintained by valley's renowned luxury home builder, Desert Star Construction. This signature address encompasses over 9 acres; 13,111 square feet of living space to including 1,789 SF (2 bedroom) guest home.

5724 E Mockingbird Lane Paradise Valley, AZ 85253

$19,999,888
7 Beds
9 Baths
14,801 SqFt
Status Active
MLS # 6408372
Property Type Single Family - Detached
Price Type --
Experience this incredible brand-new residence, meticulously crafted on 5 acres, which will be one of the most significant estates built in Paradise Valley. This spectacular property will offer a split, single level floor plan, lush & mature manicured grounds, impeccable finishes and design throughout in one of Paradise Valley's most expensive locations! Enjoy the world class amenities, indoor and outdoor lifestyle, pool, spa, ramada, tennis court and never before seen features in a home with the iconic view of Mummy Mountain as the backdrop. Located in the highly desirable 3 C's school district, also featuring a 11 car garage for auto collectors. This is Arizona's most prestigious presale opportunity.

4228 E Highlands Drive Paradise Valley, AZ 85253

$19,500,000
4 Beds
5.5 Baths
8,577 SqFt
Status Active
MLS # 6466779
Property Type Single Family - Detached
Price Type --
ABSOLUTELY GORGEOUS HILLSIDE ESTATE! This contemporary beauty sits on 1.25 acres with unobstructed views, stretchingfrom Camelback Mountain to the Phoenix city skyline and beyond. Located high upon the Phoenix Mountain preserve, you can take in the unbelievable panoramic views from every room. The captivating garden courtyard features a large Koi pond, turf area and serene waterfall. The spacious floor plan boosts oversized windows and high ceilings to allow in the natural light. Entertain your guests on the extended balcony's that create indoor/outdoor living and overlooks the infinity pool and spa,. Relax in the master suite with Spa like bath. Property includes a spacious guest casita and is centrally located for hiking ,biking and all the most popular dining/shopping

11264 E Wingspan Way Scottsdale, AZ 85255

$18,500,000
5 Beds
6 Baths
9,000 SqFt
Status Active
MLS # 6463142
Property Type Single Family - Detached
Price Type --
Located in the prestigious Summit neighborhood of Silverleaf, this team of master craftsman, Salcito Custom Homes, Ltd., Salcito Design Group, LLC and PHX Architecture have partnered to create a one-of-a-kind Modern Mediterranean estate. Situated on one of the most private building sites in Silverleaf, this estate boasts a 5.59-acre homesite with a 40,000 square foot building envelope and sits high over the Valley at an elevation of 2,400 ft., capturing stunning city and mountain views. This one-of-a-kind opportunity is fully approved and ready to begin construction. The 9,000 square foot design features five bedrooms and six baths, a 75-foot swimming pool, six car garage, unique skybridge and hand selected finishes that will satisfy the most discriminating buyer.

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