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What's Your Maximum Mortgage?

What is your maximum mortgage? That largely depends on your income and current monthly debt payments. This calculator collects these important variables and determines your maximum monthly housing payment and the resulting mortgage amount.

Definitions

Monthly income

Total monthly income from all sources. All income should be entered before taxes.

Monthly housing expenses

Your monthly houses expenses from the housing expenses worksheet. The items entered as housing expenses make up the taxes and insurance portion of your monthly PITI payment.

Monthly liabilities

Your monthly liabilities from the liabilities worksheet. Your monthly liabilities are used to calculate your maximum PITI.

Monthly housing payment (PITI)

This is your total Principal, Interest, Tax and Insurance (PITI) payment per month. This includes your principal, interest, real estate taxes, hazard insurance, association dues or fees and principal mortgage insurance (PMI). Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

1. Monthly Income X 28% = monthly PITI
2. Monthly Income X 36% - Other loan payments = monthly PITI

Maximum principal and interest (PI)

This is your maximum monthly principal and interest payment. It is calculated by subtracting your monthly taxes and insurance from your monthly PITI payment. This calculator uses your maximum PI payment to determine the mortgage amount that you could qualify for.

Start interest rates at

The current interest rate you could receive on your mortgage. This is used as the starting point for displaying a range of interest rates and the resulting mortgage amount.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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Pamela Lieb RE/MAX Palos Verdes Realty 25550 Hawthorne Blvd Suite 100 Torrance, CA 90505 DRE# 00779647 Office: 310-375-9831 Fax: 866-319-6577 Cell: 310-683-9743 PamelaLieb@NUMBER1EXPERT.com Pamela Lieb, CRS, GRI, CLHMS, QSC, Re/Max Palos Verdes Real Estate Broker with over 25 years of experience in the representation of unique estate properties in the prestigious communities of Palos Verdes Estates, Rolling Hills, Rolling Hills Estates and Rancho Palos Verdes, as well as the South Bay Beach Cities, Torrance, and San Pedro. Pamela's extensive knowledge of the South Bay enables her to excel at matching clients to the perfect home. Pamela is dedicated to serving the needs of her clients with discretion and attentive service. A favor of reply is requested to join Pamela's distinguished client list: 310.544.1365 or e-mail Pamela at Pamela@PamelaLieb.com www.MyPalosVerdesRealEstate.com is brought to you by Pamela Lieb NUMBER1EXPERT™ in real estate for Palos Verdes Estates, Rancho Palos Verdes and Rolling Hills, California Read Pamela Lieb's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

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