Use our online mortgage affordability calculator to see whether or not you are financially prepared to purchase a new home. Every year, millions of people take a leap of faith and decide to purchase a new home to start an exciting milestone in their life.
Nonetheless, mortgages are long financial commitments that require a great deal of stability in both career and household finances. Use this calculator to see the amount you can reasonably finance on a new home.
This calculator is very easy to use and asks simple questions. You will see a few inputs that ask you to put in your:
- Annual Income – Total Household Income
- Monthly Debts – Credit Cards, Student Loans, Car Loans and other monthly expenses
- Down Payment – How much money you will put towards your new home
- Years – The life of the mortgage you are seeking (Typically anywhere between 20-40 years)
- Mortgage Rate – The interest rate on the loan
- Debt to income ratio: Total household income compared to total debt
Once you have filled out the inputs with your information, at the very end of the calculator form, you will see a button that says “calculate”. Press this button to get your calculations.
From there, you will get an estimate of the amount of a home you can reasonably afford. Obviously, the more money you make and the less debt you have, the more expensive of a home you can afford.
To get the best estimate, be sure that you are using the most accurate information and that you are totally cognizant of all of your month debts. Use the UAE Money Experts Budget Calculator to help.
You can play around with the numbers and just small things such as the interest rate and down payment to get a better of idea of what type of interest rate you should shop for along with how much money you should reasonably put down in order to afford the home you desire.