A more detailed look
This calculator gives you a good idea of what your mortgage will look like based on your income and what you can afford. To use it, you will need to know:
- Sales price of the home–the purchase or listing price of the house you want to buy
- Down payment–the up-front amount you are planning to put down on the purchase of the home. It can be entered as a dollar amount or a percentage. Please note that any percentages over 99% will automatically be calculated as a dollar amount.
- Estimated interest rate–the rate that you expect to receive on your financing
- Property state–the state in which the house you are buying is located
- Estimated total monthly debts–the amount of debt (e.g., car loans, student loans, credit cards, etc.) that you pay each month. Note–do not include rent, utilities or other payments that will disappear or change when you move.
- Points charged–the origination fees and/or discount points charged by your lender. The standard is a 1% origination fee and zero points. If you do not know this information, assume a 1% origination fee.
Once you’ve filled in the mortgage income calculator fields, you’ll see a list of recurring payments associated with your home purchase. The mortgage calculator adds these up and tells you the income or salary that is needed to buy a home. If you’re wondering how we got to that number, see below:
- Total income needed–the mortgage income calculator looks at all payments associated with the house purchase and then aggregates that as a percentage of income. Most lenders require a borrower to keep housing costs at or below 28% of their pretax income. Total monthly debt payments (including housing costs) normally should not exceed 36% of pretax income. In some cases, Lenders may exceed the 28% / 36% guideline if the borrower meets certain requirements.
***Disclaimer: This calculator is offered for illustrative and educational purposes only and it is not intended to replace a professional estimate. Calculator results do not reflect all loan types and are subject to individual program loan limits. All calculations and costs are estimates and therefore, Guild Mortgage (“Guild”) does not make any guarantee or warranty (express or implied) that all possible costs have been included. The assumptions made here and the output of the calculator do not constitute a loan offer or solicitation, or financial or legal advice. Please connect with a Guild loan professional for a formal estimate. Every effort is made to maintain accurate calculations; however, Guild assumes no liability to any third parties that rely on this information and is not responsible for the accuracy of rates, APRs or any other loan information factored in the calculations.