Wondering How Much Mortgage You Can Afford? Here’s How to Calculate It

Many people are aware of the financial commitment that is involved when investing in a home, but what that amounts to is different for every person. From what you can afford to what a lender will allow, there are plenty of details involved in determining the right home for you. If you’re not quite sure what the right price is, here’s how to approach home ownership and determine your debt-to-income.

Utilize the Calculators on My Website

Visit my website at www.JPCookAZRealEstate.com.  Click on ‘Buyers’ then utilize the Affordability Calculator, which will tell you how much house you can afford with your current income and expenses.  You can also utilize the Mortgage Calculator to determine how much your monthly house payment will be.

Do it Yourself:  Calculating Your Debt-To-Income Ratio

You may not know what your DTI ratio is, but it has a lot to with how much home you can afford. In order to calculate this amount, add together all the debts you owe each month and divide them by your monthly pre-tax income. For example, if your credit card is $150 and your rent is $900, your debt amount would be $1050. Divide this amount by your income, say $2500, to get 0.42. This means your DTI ratio is 0.42 or 42%.

What Your DTI Means

While a DTI in the high 20s or low 30s is good, anything that hovers above 43 percent may serve as a red flag to the lender. The lower your DTI ratio is, the more likely it is that a lender will approve your mortgage application since you’ll have the disposable income to deal with financial hurdles. If your dream home has you hovering close to this amount, it may be a sign that it’s a bit out of reach.

How Do You Want To Live?

It’s quite common to be taken over when you find your dream home and decide to commit. However, buying a home is a huge financial commitment, and if you’re buying more than you can afford it may drain your well-being over time. Instead of diving in, determine other expenses that are likely to come up in the next few years, whether it’s travel, a child or a new car. It’s important to have the home you want and budget when buying it, but you’ll still need to financial wiggle room in case something comes up.

There are a lot of factors involved in determining how much house you can afford, but by calculating your DTI ratio and being aware of your spending plans, you’ll be well on your way to an ideal price range.  Give me a call for more information – J.P. Cook – 602-320-4253.

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Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

19711 W Georgia Avenue Litchfield Park, AZ 85340

$1,500,000

4 Beds

2.5 Baths

3,051 SqFt

Status Active

MLS # 6756040

Property Type Single Family Residence

Price Type --

NEW 2 BEDROOM GUEST HOUSE beautifully accents this 4 BED 2.5 BATH CUSTOM home on nearly an acre with room for RV & TRAILER PARKING, PLUS 5 CAR GARAGE SPACES. ASSUMABLE VA. This property offers a wide range of possibilities: use the Guest House for multi-generational living, office space, studio space, rental income, entertaining space, pool house or simply for guests. This custom space offers beautiful finishes and upgrades. Both homes feature 10 ft ceilings. The main house offers an open, split floor plan with add'l den/office. Sparkling pool with a waterfall feature, built-in spa & large Baja step, plus an in-pool table. The grand gazebo offers added shade, along with the oversized covered patio. There is room for a lift in the 12' high guest house garage. You've got to see this!

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43 E 14th Street Tempe, AZ 85281

$1,500,000

4 Beds

4 Baths

3,410 SqFt

Status Active

MLS # 6758777

Property Type Single Family Residence

Price Type --

One of the most desired locations in all of Tempe!! Mid-century stunner in coveted University Park. Walk to ASU campus! 4 bedrooms plus and office and 4 full bathrooms Grand luxury mid-century resort style heated pool. Designer landscaping, newly added over-sized 2.5 car garage (Man Cave) with separate AC / vaulted ceiling, epoxy, full bath, tankless hot water heater NEW AC, large outdoor stainless steel sink. Originally renovated in the 1960's by renowned architect and Frank Lloyd Wright enthusiast, Bennie Gonzalez. Homes like this rarely hit the market, what an opportunity to own a piece of history in the heart of Tempe.

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14749 E Pecos Road Gilbert, AZ 85295

$1,500,000

7 Beds

4.5 Baths

4,271 SqFt

Status Active

MLS # 6773178

Property Type Single Family Residence

Price Type --

Modernized home, in the heart of Gilbert w/ acreage, RV GARAGE, amazing POOL. NO HOA, HORSE privileges, come view this stunning residence where country living meets modern luxury! Sitting on almost an acre, you will enjoy all the privacy this property offers with huge yard spaces (on irrigation), flood lights in front yard and long driveway perfect for all of your toys!!! RV garage is magnificent w/capacity for 8 cars, adjustable AC, and an upstairs loft and plenty of storage. Upon entering, you'll be greeted by a carpeted living room and French doors leading to a spacious den/office. Enter into the gourmet Chef's kitchen w/ top of the line Viking appliances, massive marble island w/breakfast bar, soft-close custom cabinets, a mosaic backsplash, dual kitchen sinks and dishwashers, and a large walk-in pantry w/a pebble ice machine. Home boasts so many upgrades including Contol4 smart home system, 360-degree security, recessed lighting, neutral paint, pre-wired surround sound, vaulted ceilings, central vacuum, and glossy tile floors. Did we mention the 90 degree, 6 panel pocket sliding glass doors! Don't miss the guest quarters towards SE corner of property complete with Kitchenette, full bed and full bath!!! Secondary bedrooms are spacious and Primary Bedroom is absolutely gorgeous with stunning primary bathroom! You will not be disappointed!!!

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4684 E Coachwhip Road Cave Creek, AZ 85331

$1,500,000

4 Beds

3 Baths

3,156 SqFt

Status Active

MLS # 6772406

Property Type Single Family Residence

Price Type --

Spectacular and breath taking Mountain Views. Prestigious area of custom homes in Cave Creek, AZ built with post tension slab! Split floor plan with separate living and family rooms, amazing kitchen with newly installed cooktop, double ovens , microwave, refrigerator and a huge pantry. The formal dining area is home to their gorgeous piano right now. The laundry room has lots of built in storage cabinets with a laundry sink as well. Washer and Dryer included. The Master Suite is huge with a separate tub, large shower, two sinks and a great walk in closet. Tiled baths, carpet in the bedrooms. Separate powder room just off the entry for your guests. Bedroom 2 just off the entry is being used as a home office, with Bedrooms 3 and 4 just down the hall. The 3 car garage is extended length and ready for your cars and/or trucks with room to spare. Yes, there is an RV Gate and room for your toys. Sellers just had epoxy done on the garage floors this week. Professionally landscaped front and back with a gorgeous salt water pool, exterior lighting, built in waterfall with its own misting system right in the rocks. The large covered patio is ready for entertaining family and friends or just sit back and enjoy the incredible sunsets yourself. This is truly a perfect oasis that will mesmerize and delight you. Best of all, no HOA so bring your toys. Come see it today and make it yours!

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11150 S Jefferson Street Mayer, AZ 86333

$1,500,000

4 Beds

3 Baths

2,926 SqFt

Status Active

MLS # 6764808

Property Type Single Family Residence

Price Type --

Welcome to your dream ranch! This sprawling 98-acre property features a spacious 2,926 sq. ft. home with 4 bedrooms, 2.5 baths, and stunning panoramic views. The updated kitchen boasts brand-new cabinets and countertops, perfect for entertaining. The master suite includes an updated bathroom and access to a private deck with breathtaking views. Relax in the hot tub or cozy up by the wood stove on cool evenings. The large unfinished basement offers ample storage, and the 3-car garage provides plenty of room for vehicles or a workshop. The entire property is fully fenced, ideal for ranching, farming, or recreational activities. Enjoy the best of both worlds with the peace and privacy of rural living, just 40 minutes from Prescott and an hour from Phoenix. This unique property is a rare find

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541 S Dunivin Lane Dewey, AZ 86327

$1,500,000

4 Beds

3 Baths

1,826 SqFt

Status Active

MLS # 6766145

Property Type Single Family Residence

Price Type --

Welcome to your dream horse property! Nestled on 8 acres of pristine land, this fully functioning equestrian estate offers the perfect blend of country charm and modern amenities. The charming home boasts two spacious master bedrooms, ideal for hosting guests or providing extra comfort for family members. Step outside and immerse yourself in the horse lover's paradise. The property features multiple horse stalls, pens, and ample grazing areas, making it a haven for your equine companions. Whether you're a seasoned rider or just starting out, the roping arena is perfect for practicing your skills or hosting events. With scenic views, plenty of space for expansion, and everything you need to live the ultimate country lifestyle, this property is truly a rare find!

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2317 W Dobbins Road Phoenix, AZ 85041

$1,500,000

3 Beds

2.5 Baths

2,675 SqFt

Status Active

MLS # 6778180

Property Type Single Family Residence

Price Type --

Enter this private oasis via security gate, with no view of the property from the street. Industrial design with exposed rafters, concrete flooring throughout, concrete countertops. Two red brick wood fireplaces with concrete face and steel trim. Pella Reserve Contemporary Windows with black wood trim. 12ft multi-slide patio door in living room and 9ft multi-slide in main suite. Saltwater heated diving pool with mountain views. Free standing yoga studio with infrared panels. Garden paradise with mature trees, fruit orchard, and rose garden. Options for pond and greenhouse.

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5604 S 225th Avenue Buckeye, AZ 85326

$1,500,000

4 Beds

3.5 Baths

3,417 SqFt

Status Active

MLS # 6777965

Property Type Single Family Residence

Price Type --

Wow, exceptional 4-bedroom property in Roosevelt Citrus at Buckeye! This Ranch-style beauty sits on a massive 3.1-acre lot, offering tons of space for livestock & endless potential to get creative. Fully fenced-in, 4-car garage, fun basketball slab, and a low-care desert landscape are features that can't be left unsaid. The interior boasts clean lines that favor a western & functional design completed with plantation shutters, wood-look plank tile flooring, recessed lighting, and a soft grey palette. The formal living room has a dry bar, making it easy to entertain. The large family room boasts an exposed beam ceiling, pre-wired surround sound, and wide sliding glass doors connecting your home inside & out. The bright dining room is attached to the kitchen for ease in serving wonderful

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3076 E La Costa Drive Gilbert, AZ 85298

$1,500,000

3 Beds

3.5 Baths

4,247 SqFt

Status Active

MLS # 6779264

Property Type Single Family Residence

Price Type --

Discover luxury living in Acacia Estates, South Gilbert's premier gated community, this exquisite single-story home built by T.W. Lewis. Spanning 4,247 sq. ft., this residence exudes warmth & sophistication. Step inside to a spacious layout featuring 3 bedrooms, 3.5 baths, an office & separate guest casita offering privacy & comfort for visitors. The living and dining areas showcase rich wood flooring, while opulent travertine flooring in a herringbone pattern adorns the rest of the home. The gorgeous kitchen is a masterpiece crafted for those who love to entertain. Retreat to the grand master suite and spa-like bathroom for ultimate relaxation. Additional features include a 4-car garage, owned solar system- resort-like backyard w/pool - See the document section for more upgrades

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3923 W Fox Road Laveen, AZ 85339

$1,500,000

4 Beds

3.5 Baths

3,462 SqFt

Status Active

MLS # 6779405

Property Type Single Family Residence

Price Type --

Own a piece of paradise at the base of South Mountain in a luxurious, private neighborhood. This custom-built estate boasts breathtaking mountain views and quick access to the I-10 and 202 freeways. Sunset Cove Estates truly embodies its name, offering the Phoenix Valley's most breathtaking sunrises and sunsets. Spanning approximately 3,462 sqft, this home features 4 spacious bedrooms with walk-in closets and 3.5 elegantly designed bathrooms, including a Jack and Jill for convenience. Revel in 14-foot ceilings transitioning to 10-foot in the bedrooms, creating an airy feel. A grand iron front door opens to an expansive living area with a 15-foot window slider framing gorgeous views. The split master suite provides a private retreat, and South Mountain Park's hiking and biking trails are steps away. Experience luxury, comfort, and panoramic views in this exceptional home.

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3744 N Rowen Street Mesa, AZ 85207

$1,500,000

4 Beds

3.5 Baths

3,582 SqFt

Status Active

MLS # 6783714

Property Type Single Family Residence

Price Type --

LOCATION, LOCATION, LOCATION!! SITUATED ON THE BEAUTIFUL LAS SENDAS GOLF COURSE WITH UNOBSCURED VIEWS OF THE COURSE, AND RED MOUNTAIN PLUS THE VERY BEST SUNSETS AND CITY LIGHTS THIS SINGLE LEVEL HOME OFFERS 4 BEDROOMS AND 3.5 BATHROOMS PLUS AN OFFICE, THE GOURMET KITCHEN FEATURES A LARGE PREP ISLAND AND A SEPARATE WET BAR WITH ICE MAKER AND WINE REFRIGERATOR. THIS HOME IS ALSO FEATURES AND OVERSIZED THREE CAR GARAGE. NEW HVAC IN 2022 ALL NEW EXTERIOR STUCCO AND PAINT IN 2023. THIS HOME HAS ALL STONE FLOORING, NO CARPET. HARD TO FIND THIS ONE WILL GO FAST!!

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22245 E Via De Palmas -- Queen Creek, AZ 85142

$1,500,000

7 Beds

4 Baths

4,286 SqFt

Status Active

MLS # 6784197

Property Type Single Family Residence

Price Type --

Country Living on a county island in the Heart of Queen Creek, AZ. Well designed 2''x6'' constructed 7 bed, 4 bath home on 1.50 acres boasting 4 car attached garage and a massive (40' x60') 2,400sf detached insulated garage. Upon arrival you will notice the sought after classic farmhouse style with woodgrain metal siding, stone veneer, and metal roofing. The circular driveway will lead you past the recently installed artificial grass and the front covered porch to the rustic solid wood plank front door. As you enter, the Great Room's high vaulted ceiling with aspen tongue and groove panels, hardwood oak flooring and the custom iron baluster will invite you in. Kitchen features hickory cabinets, large island, stainless appliances and breakfast nook with a bay window view... Split floorpan having two master suites (one on each level) plus an additional two bedrooms downstairs and three upstairs provides plenty of room for family, guests and/or a home office. Additional house features include oversized loft/media room, upstairs study, laundry room with multiple storage areas, Milgard windows, powered window shades, water softener, 400 amp electrical panel, 220V outlet in attached garage, garage racks/storage and a convenient pull through garage door to backyard. Outback the full length patio, large grass area and professional in-ground basketball hoop create the perfect setting to relax and/or entertain. Additional exterior feature include fully fenced backyard, RV gate, front water fountain and mature landscaping. Area features include biking/walking paths, parks, shopping, dining and entertainment.

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