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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38424 N 69th Street Cave Creek, AZ 85331

$1,495,000

4 Beds

4 Baths

3,205 SqFt

Status Active Under Contract

MLS # 6769291

Property Type Single Family Residence

Price Type --

DON'T MISS THIS STUNNING & IMMACULATE CUSTOM HOME IN TOWN OF CAVE CREEK! STUNNING & IMMACULATE 4 BD/4 BATH/3+ CAR GARAGE IN GREAT LOCATION OF CAVE CREEK! SOARING CEILINGS!GREAT ROOM FLOORPLAN! ALDER WOOD CABINETS & DOORS;FIREPLACE IN GR;GRANITE COUNTERTOPS;CHEF'S KITCHEN WITH SS APPLIANCES!PANTRY;EAT UP BAR;EAT IN KITCHEN & FORMAL DR W/BUILT IN BEAUTIFUL HUTCH.SPRAWLING PRIMARY BR /SPLIT FLOORPLAN ~ ALL ONE LEVEL. ON DEMAND HOT WATER;UNBEATABLE MOUNTAIN & SUNSET VIEWS! BACK PATIO IS PERFECT FOR ENTERTAINMENT;BUILT IN BBQ;HEATED SPOOL;JACUZZI HOT TUB; HUGE COVERED PATIO W/TV~SITTING AREAS. LUSH LANDSCAPING!FRUIT TREES!OVERSIZED 3CG W/BUILTINS & SHOP AREA- CLOSE TO TOWN FOR ALL THE AMMENITIES YOU COULD WISH FOR!

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4825 N 72nd Way Scottsdale, AZ 85251

New

$1,495,000

3 Beds

3.5 Baths

2,235 SqFt

Status Active

MLS # 6780709

Property Type Townhouse

Price Type --

Welcome home to your jewel box in the heart of Scottsdale's high-profile 85251 zip code! This modern masterpiece sits in Royale Gardens, a lush and tranquil tree-lined community reminiscent of Old Hollywood. Completely redeveloped from the foundation up and featuring both Scandinavian and contemporary design, this custom two-story residence features a rare 3 bedroom, 3.5 bathroom layout that is both spacious and perfect for entertaining. Stunning from the finest materials used, including imported hardwood floors, floating staircase, glass enclosed showers, recessed LED lighting, marble bathrooms, and a world-class gourmet kitchen with Sub-Zero integrated refrigerator and Corian countertops.

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34508 N 99th Way Scottsdale, AZ 85262

$1,495,000

5 Beds

3.5 Baths

3,712 SqFt

Status Active

MLS # 6699305

Property Type Single Family Residence

Price Type --

A Contemporary Home in the Prestigious Gated Legend Trail. Located on the 13th hole of the Golf Course. While sunning at the new pool and spa with water feature or just taking in the sunset views, this home is a stunner! The high ceilings and large expansive floor to ceiling windows capture the gorgeous views at the living room, great room and owner's suite; all overlooking the backyard and perfect for entertaining. This spacious home with private owner's suite and spa-like bath with floating lit vanity cabinetry, beautifully tiled glass shower, separate free standing soaking tub and 2 walk-in closets is fabulous! Also, an additional ensuite bedroom can easily transform into a casita. Legend Trails is among Top 100 Facilities by Golf Magazine/Best Places to Play by Golf Digest Magazine

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8196 E Sunnyside Drive Scottsdale, AZ 85260

$1,495,000

4 Beds

3 Baths

3,097 SqFt

Status Active

MLS # 6709760

Property Type Single Family Residence

Price Type --

Discover refined living in this exquisite 4-bedroom, 3-bath home in the prestigious Scottsdale Country Club. Nestled on a large lot, this residence offers an oasis of tranquility with its sparkling pool and captivating golf course views. The spacious interior is a blank canvas, ready for your personal design touches. Imagine creating your dream home with elegant spaces perfect for both relaxation and entertaining. Enjoy the serene surroundings and exclusive lifestyle this community offers. A remarkable opportunity at an exceptional price for this highly sought-after area. Indulge in luxury and make this dream home yours today.

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13778 E Charter Oak Drive Scottsdale, AZ 85259

$1,495,000

3 Beds

2.5 Baths

3,060 SqFt

Status Active

MLS # 6740773

Property Type Single Family Residence

Price Type --

Experience luxury living in this guard gated Scottsdale Mountain home. Updated with light & bright finishes, floor-to-ceiling windows & sliding glass doors that frame breathtaking mountain views. The chef's kitchen boasts an immense island w/ stainless steel appliances & endless counter space that seamlessly flows into the family room & out to the backyard. Enjoy alfresco dining in the spacious covered patio, overlooking a sparkling lap pool. The primary suite is a true retreat, w/ direct access to the outdoors. The spa-like bathroom offers a large walk-in glass shower, a luxurious soaking tub, and an expansive walk-in closet. Secondary bedrooms are equally spacious, providing tremendous flexibility for your needs. This exquisite home combines elegance, comfort & breathtaking scenery. Go to our website for more information.

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3009 S Tourmaline Drive Unit 22 Flagstaff, AZ 86005

$1,495,000

3 Beds

3.5 Baths

1,891 SqFt

Status Active

MLS # 6742480

Property Type Apartment

Price Type --

Experience luxury living in the prestigious Pine Canyon Golf Community with this stunning single-level condo. This highly upgraded new build boasts 2 bedrooms and 2.5 bathrooms, accompanied by a charming 1-bedroom, 1-bathroom casita, perfect for guests, office or private retreats. The home is exquisitely upgraded throughout, offering elegance and modern conveniences at every turn. Enjoy serene, filtered views of the driving range from the beautifully landscaped outdoor spaces, perfect for relaxation or entertaining. The attached 2-car garage provides ample storage and convenience. Nestled within Pine Canyon's sought-after community, this residence is a rare gem that combines comfort, style, and a prime location. See attached upgrade list.

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8510 E Santa Catalina Drive Scottsdale, AZ 85255

$1,495,000

5 Beds

3.5 Baths

3,508 SqFt

Status Active Under Contract

MLS # 6739047

Property Type Single Family Residence

Price Type --

*** Back on the market as Buyer couldn't perform*** Stunning beautifully appointed home in desired Pinnacle Peak Estates! 3,500+ sf 5 bedroom 3 bath home with double door entryway, hardwood flooring, vaulted ceilings, plantation shutters throughout, built-in cabinetry and much more! This home is light and bright and perfect for entertaining. The Chef's kitchen features all white cabinetry, center island, breakfast bar, granite counters, walk-in pantry, gas cooktop, stainless steel appliances including a double oven! Split floorplan with the spacious primary bedroom including a sitting area opening privately to the backyard. With North/South Exposure, you will love entertaining in your private backyard with a large lovely covered patio overlooking your sparkling heat spa and pool. So many throughtful features in this home, especially the large laundry room with plenty of storage as well as the workshop area off of the laundry as you enter the 3 car garage - amazing amount of storage in this home! This one is special - don't miss out!

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1822 E Washington Avenue Gilbert, AZ 85234

$1,495,000

4 Beds

3 Baths

3,596 SqFt

Status Active Under Contract

MLS # 6765461

Property Type Single Family Residence

Price Type --

Prepare to be amazed! This beautifully FULLY remodeled home is located in one of Gilbert's top desirable neighborhoods-Circle G Ranches. This home is situated on a corner lot with nearly an acre of irrigated land. Whether you are dreaming of building a casita, a shop, a place to store all your toys, or even a sports court, with no HOA the possibilities are endless. Do you love to have space to entertain? If so, this homes layout is for you! Offering a family room and not just one, but two living rooms! And if this home couldn't get any better, it is located just minutes from downtown Gilbert!

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1410 W Sandpiper Drive Gilbert, AZ 85233

$1,495,000

5 Beds

3.5 Baths

4,172 SqFt

Status Active

MLS # 6733283

Property Type Single Family Residence

Price Type --

Stunning luxury lakefront home with private dock! SELLER FINANCING AVAILABLE. AVAILABLE FURNISHED! This property offers luxury living with breathtaking views. Nestled on a private cul-de-sac lot, this expansive residence boasts nearly 4,200 sq. ft and is one of the largest lake frontage lots in the area. Additionally, you'll find an extended patio, large private balcony, expansive primary suite, pool with spa, gourmet kitchen, huge windows, and breathtaking vaulted ceilings. All of this while being just minutes from Downtown Gilbert - The Heritage District. This is a must see as homes like this do not come on the market often!

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6325 E Monte Cristo Avenue Scottsdale, AZ 85254

Open House

$1,495,000

4 Beds

4 Baths

3,475 SqFt

Status Active

MLS # 6745644

Property Type Single Family Residence

Price Type --

Fantastic, freshly remodeled family home in the Kierland area. Back of the culdesac location, this large, open floor plan split level is perfect for the growing family. New flooring throughout, new bathroom designs, painted inside and out, and new lighting makes this home stand out. The large pool, covered patio, built in BBQ, & generous back and side yard are great for outdoor entertaining. Close to good schools, restaurants, and fantastic shopping. You won't want to miss this one!

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3181 E Berridge Lane Phoenix, AZ 85016

Open House

$1,495,000

3 Beds

3.5 Baths

2,745 SqFt

Status Active

MLS # 6762515

Property Type Single Family Residence

Price Type --

Experience luxury resort living at its finest at the exclusive 24/7 guard-gated community of Biltmore Greens! This 3BR/3.5 BA w/2 car garage 2745 sqft split floorplan home is adorned w/soaring ceilings & wood beam accents which provide an appealing flow from the formal living & dining area to the kitchen & family room. Duel Primary suites w/walk in closets. Remodeled kitchen with granite & stainless-steel appliances. Remodeled Baths. Most of the rooms wrap around a meticulously manicured patio w/fountain & spa. Take the spiral staircase to the observation deck where there are breathtaking 360-degree views of the city & mountains. Ideal for entertaining, this lock & leave house is in a Prime location just minutes from the Historic Biltmore Hotel, Golf Courses, Shopping & 5-star restaurants

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6711 E Camelback Road Unit 21 Scottsdale, AZ 85251

$1,490,000

2 Beds

2 Baths

2,049 SqFt

Status Active

MLS # 6769046

Property Type Townhouse

Price Type --

Welcome to your tranquil oasis near the heart of Old Town Scottsdale! Nestled within the serene, guard-gated Village of Pavoreal, the home offers a unique blend of luxury, convenience, and timeless charm. As you step into this meticulously crafted residence, you'll immediately be greeted by the warmth of espresso hardwood floors and a space flooded with natural light, creating an inviting atmosphere throughout. The den provides a versatile space for work or relaxation, while the absence of stairs ensures easy accessibility. Experience the epitome of peace, privacy, and security away from major streets. Surround yourself with lush vegetation and fruit trees, creating a picturesque backdrop for your everyday life. The home can be sold furnished making it an ideal lock and leave opportunity The resort-style lighting illuminates the yard and adds to the enjoyment of your own private oasis. With high ceilings adding to the sense of spaciousness, this lock-and-leave residence offers convenience and security, perfect for those with a dynamic lifestyle. Rest easy knowing that your home is safeguarded within the 24/7 guard-gated community, providing peace of mind and a sense of exclusivity.

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