# Affordable Home Calculator

The Affordable House Calculator is designed to make it very easy to answer the question, "How much house can I afford?". It considers income, taxes, loan payments and maintenance. See "Help" for more details.

#### Info...

This calculator, while called an "Affordable House Calculator", can actually be used for determining the affordability of any building or property. This is a common trait of many financial calculators. They can be used for similar, though different, calculations. It can be confusing, but we're here to help. Just post your questions below.

##### C-Value!, A TVM Calculator for Windows

An extremely flexible time-value-of-money calculator for Windows computers.

- Loan or investment calculations.
- Cash flows can be regular or irregular
- Create and print schedules.
**Save your data to disk for later use.**

Suitable for auditors, accountants, lawyers and you!

## Affordable House Help

This calculator answers one of the most important personal finance questions that we ask ourselves — **"How much house can I afford?"**.

Enter your annual income (before taxes) and the cash you have available. Then enter the interest rate you expect on a mortgage followed by the number of monthly payments you expect to make (360 for a 30 year mortgage, 180 for a 15 year mortgage). Enter the estimated annual taxes and insurance, the estimated annual total maintenance.

For the "Expressed as a percentage of your annual income, how much do you want to spend?" question, this relates to the amount entered for "Buyer's Annual Income?". If you entered $125,000 for income and you enter 33% for the amount of the income you are willing to devote to housing, then the calculator will assume $41,250 (33% of $125,000) will be the annual amount spent on housing to cover mortgage payments, taxes & insurance and maintenance.

Note that your "Monthly Mortgage Payment" may actually be higher due to the lender adding taxes and insurance costs to the amount they collect.

## Anthony says:

Hello, Why is it on Affordable home calculator that when I decrease taxes and insurances the payment per month increases? I am expecting it to decrease also. Thank you

## Karl says:

That behavior is expected.

If either the insurance or maintenance decreases, then the home buyer can afford more for the mortgage payment itself.