What Can I Afford?

Protecting You Through Education
There’s one question slowing everyone from starting the home buying process. It’s a daunting one. The famous four words are, “What can I afford?” Many variables are plugged into the mortgage formula—loan types, rates, income, monthly payments, etc.
At Get A Rate, we are devoted to helping you discover options that work in harmony with your budget and lifestyle. That means, no rushed decisions, no overextending financially, no misguided advice, and no sacrificing on goals.
Mortgage Companies typically start by calculating the debt-to-income ratio. This includes your front-end and back-end ratios.
Let's Calculate Affordability
What's a Debt-to-Income Ratio?
front-end ratio
Your front-end ratio is a comparison of your gross monthly income and your projected housing expenses:
Mortgage payment
Property Taxes
Homeowner's Insurance
HOA Dues and/or PMI
The Front End Ratio should not exceed 38 to 45% of your gross monthly income. For example, if your average monthly income is $5,000, your total mortgage, taxes and insurance payment should be between $1,900 and $2,250.
back-end ratio
Your back end ratio will include your front end payment plus minimum monthly payments you're obligated to pay that are found on your credit report.
Monthly Car Payments
Min Credit Card Payments
Student Loans
Alimony
Child Support and more
The Back End Ratio should not exceed 45 to 55% of your gross monthly income. For example, if your average monthly income is $5,000, your total back end, which includes your mortgage payment, should be between $2,250 and $2,750.
What Can I Afford?
Get started by using our True Home Affordability Calculator. It's called 'True' because it's the only calculator that ensures you're fully prepared to take on the responsibility of owning a home.
Let's Calculate Affordability
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NMLS #907795 Licensed Residential Mortgage Lender in PA, CT, FL and NJ (by the NJ Department of Banking and Insurance). Equal Housing Opportunity Lender. When and if acting as a broker, Get A Rate will not make commitments or fund mortgage loans. Registered NY Mortgage Broker. All NY mortgage loans are arranged with third party lenders - Get A Rate LLC does not directly offer or guarantee NY interest rates or loan programs and does not directly issue commitments or make final decisions on loan terms. Authorized website by the New York State Department of Financial Services.

Get A Rate LLC is an FHA Approved Direct Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government. These programs are not a commitment to lend and program guidelines are subject to change.

Additional Disclosures

If you have any complaints, please reach out to: NJ DOBI, Trenton, NJ. Rates as of 4/21/18. Loans are arranged through third parties. Recent advertised rates are subject to change without notice. Advertised rates are available only on owner-occupied, single-family, residential properties, 80% LTV purchase/rate term. Fees and charges may apply. An advertised rate is not guaranteed and does not constitute an approval. Not all applicants will be approved. Minimum credit score requirements apply. Full documentation, acceptable properties, insurance, and additional underwriting is required. Loans are secured by liens against real property. Terms, conditions, and restrictions apply.

Calculations computed by Get A Rate Rent vs. Buy and Affordability calculators are estimations. Get A Rate is not an accounting firm or financial advisor. Please consult a tax professional and/or financial advisor for more accurate information.