Mortgage Qualification Calculator Annual Income: Down Payment Amount: Outstanding Debts: Interest Rate: Loan Term: function getMortgageInfo() { var income = parseFloat(document.mortgageform.income.value); var downPayment = parseFloat(document.mortgageform.downpayment.value); var outstanding = parseFloat(document.mortgageform.outstanding.value); var rate = parseFloat(document.mortgageform.rate.value) / 100; var term = parseFloat(document.mortgageform.term.value); // Maximum mortgage calculator = // (monthly income * 0.28) - (monthly outstanding debt payments) maxMortgage = (income * 12 * 0.28) - (outstanding / 12); var monthlyPayment = maxMortgage * rate / (1 - Math.pow(1 + rate, -1 * term)); var maxMortgageMessage = "You Qualify for a Maximum Loan of $" + Math.ceil(maxMortgage + downPayment) + " with a Monthly Payment of $" + Math.round(monthlyPayment * 100) / 100; document.getElementById('maxMortgageMessage').innerHTML = maxMortgageMessage; } What is a Mortgage Qualification Calculator? A mortgage qualification calculator is an online tool that can help you determine whether you are eligible for a mortgage loan. This kind of calculator uses information such as your income, debt, and down payment to generate an estimate of the amount you can afford to borrow for a home. By estimating what you can afford, the calculator can give you a better idea of the type of mortgage you should pursue. It's important to note that the mortgage qualification calculator is not a guaranteed loan approval and should not be used to qualify for a loan. Instead, it simply provides an estimate of the amount you can afford to borrow. What are the Benefits of Using a Mortgage Qualification Calculator? By using a mortgage qualification calculator, you can get a better idea of how much home you can realistically afford. This can help you narrow down your choices and, in turn, save you time and money. Additionally, using a qualification calculator can give you a better understanding of what you’re getting into before you apply for a loan. You can avoid the disappointment of being denied for a loan by setting realistic expectations up front. What Information Do You Need for Mortgage Qualification Calculators? Mortgage qualification calculators require some basic information about your finances. This typically includes your annual income, monthly debt payments, and down payment amount. You may also need information about the value of the home you are looking to purchase and the loan amount you are seeking. With this information, the calculator can generate an estimate of what you can afford to borrow for your new home. What Should You Consider Before Using a Mortgage Qualification Calculator? Before you use a mortgage qualification calculator, it’s important to keep in mind that it’s just an estimate. The actual amount you can borrow may be less than the amount the calculator suggests, so it’s important to have a realistic budget for yourself before you start looking for homes. Additionally, lenders may have other requirements you must meet in order to qualify for a loan. Talk to a lender about all eligibility requirements before you make any decisions. What Else Should You Know About Mortgage Qualification Calculators? Mortgage qualification calculators can be a helpful tool when you’re starting your home search, but they shouldn’t be used as a substitute for speaking to a lender. Additionally, many mortgage qualification calculators only consider a few factors, such as income and debts. Other factors, like credit scores or down payment options, may affect your loan eligibility but are not considered by the calculator. For a more accurate estimate of what you can borrow, talk to a lender about your specific situation. Conclusion Mortgage qualification calculators can help you understand what you can realistically afford before you start looking for a home. However, they are not guaranteed loan approval and shouldn’t be used in place of talking to a lender. Consider other factors, such as down payments or credit scores, and talk to a lender for a more complete picture of what you’re eligible for.