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The mortgage professionals at Grand Capital are here to guide you every step of the way with personalized solutions, expert advice, and dedicated support for your home financing needs.
Use our affordability calculator to estimate a comfortable mortgage amount based on your current budget. Enter details about your income, down payment and monthly debts to determine how much to spend on a house.
Monthly cost breakdown for the affordable house
When calculating how much home you can afford, your income, debts, and down payment are key factors. The interest rate you qualify for also plays a big role - a lower rate can significantly reduce your monthly mortgage payment. While your personal savings goals and spending habits can affect your budget, getting pre-qualified for a home loan can give you a clear picture of a sensible housing budget.
Grand Capital’s affordability calculator allows you to customize your payment details, while also providing helpful suggestions in each field to get you started. You can calculate affordability based on your annual income, monthly debts and down payment, or based on your estimated monthly payments and down payment amount.
This is the total income you earn in a year before taxes and other deductions. You can typically find this amount on your W-2 form. If you have a co-borrower contributing to the mortgage, combine both incomes to determine your total annual income.
These are your regular monthly obligations, such as car payments, minimum credit card payments, or student loans. You can adjust these amounts in our affordability calculator as needed. For example, a $250 car payment combined with a $50 minimum credit card payment would total $300 in monthly debt.
The down payment is the amount of money you pay upfront when purchasing a home. Most loans require a minimum of 3%, while a 20% down payment is ideal to lower your monthly payment, avoid private mortgage insurance, and increase your overall affordability. For example, on a $250,000 home, a 3% down payment equals $7,500, whereas a 20% down payment equals $50,000.
Your debt-to-income (DTI) ratio is the total of your monthly debt payments divided by your gross monthly income, expressed as a percentage. Lenders use your DTI to assess your ability to manage monthly payments and repay the money you plan to borrow. By default, our affordability calculator suggests a DTI of 36%.
The interest rate is the annual cost of borrowing, expressed as a percentage of your loan amount. Our calculator defaults to the national average, but your actual rate may vary based on factors like your credit score and down payment.
The loan term is the length of time you agree to repay your home loan. The most common term is 30 years (360 months), though other options are available depending on the type of mortgage that suits your needs.
When you own a home, annual property taxes are based on its assessed value and can affect your overall affordability. Tax rates vary by location. Our calculator uses a default rate, but you can adjust it in the advanced options. For a more precise estimate, consider getting pre-qualified with Grand Capital Home Loans.
Homeowner’s insurance (HOI) is required for most mortgages and protects your property. Costs vary depending on location, coverage, and provider, typically averaging around $35 per month for every $100,000 of home value.
Private mortgage insurance (PMI) is often required if your down payment is less than 20%, protecting the lender in case of default. Our calculator estimates PMI based on your home price and down payment.
Some communities require monthly HOA fees for maintenance and rule enforcement, which can affect your overall affordability.