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AFFORDABILITY
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Home Affordability Calculator - User Instructions
Overview:
This calculator helps you estimate the price of a home you can afford based on your annual income, monthly debts, desired mortgage rate, and the term of the mortgage.
Steps to Use:
Enter Your Annual Income:
Locate the field labeled "Annual Income ($):"
Input your total annual income before taxes.
Use numbers only (e.g., enter 50000 for an income of $50,000).
Input Your Monthly Debts:
Find the field labeled "Monthly Debts ($):"
Enter the total amount of your monthly debt payments (like car loans, student loans, credit card payments).
Only include numeric values (e.g., enter 500 for $500 in monthly debts).
Specify Your Desired Mortgage Rate:
In the field labeled "Desired Mortgage Rate (%):"
Input the interest rate you expect to receive on your mortgage.
Enter the rate as a percentage (e.g., enter 5.5 for a 5.5% interest rate).
Choose the Mortgage Term:
Look for the field labeled "Mortgage Term (years):"
Input the length of the mortgage period in years (common terms are 15 or 30 years).
Calculate Your Home Affordability:
After filling in all fields, click the button labeled "Calculate Home Affordability".
The estimated affordable home price based on your inputs will be displayed under the button.
Notes:
This calculator provides an estimation and should be used as a guide.
Actual affordability may vary based on credit score, exact interest rates, other financial factors, and lender criteria.
It's recommended to consult with a financial advisor or mortgage professional for a more precise assessment.
Tips:
Ensure all inputs are accurate for a more reliable estimate.
If you're unsure about the mortgage rate, you can look up the current average rates or consult with a mortgage lender.
Remember, the more accurate your inputs, the more reliable the estimated home price will be.
Feel free to use this calculator to explore different scenarios by changing the inputs and seeing how it affects the affordable home price.