If you have no idea about whether you can afford a new home or not, then use this calculator first. Its a quick and dirty way to determine your total financial circumstances and outlook. Both your mortgage company and your lender will use these mortgage ratios to determine both your income and your debt. This calculator calculates three ratios called the Housing Ratio , the Loan-to-Value (LTV) Ratio , and the Debt Ratio .

Instructions:

First, enter the number of payments you expect to make. A 15 year mortgage is (15 x 12) or 180 payments, conversely a 30 year mortgage is (30 x12) or 360 payments. Enter an interest rate. You can enter the interest rate as a percentage or as a decimal. Enter the purchase price of the home. Enter the amount you plan to borrow, also called the principal or the amount of the mortgage. All the rest of figures are MONTHLY amounts. Enter your Gross monthly income, real estate taxes, homeowners insurance, mortgage insurance, and any condominium or association dues. Finally, enter your monthly car payments, alimony or child support payments, credit card payments, and any other loan payments you make. Press the compute button and the numbers will be calculated and displayed in the table below the buttons. This is a JavaScript based calculator.