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

Wondering How Much Mortgage You Can Afford? Here's How to Calculate ItMany 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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5321 E Paradise Lane Scottsdale, AZ 85254

$1,290,000
4 Beds
3 Baths
2,974 SqFt
Status Active Under Contract
MLS # 6735973
Property Type Single Family Residence
Price Type --
Designers feel throughout this spacious 2-story home! Located on a corner lot and just across from the park. Currently being used as a short-term rental property. Come through the double front doors, with security screen doors and beautifully etched glass interior door, to see all the magnificent features of this home. Home is tiled throughout all the main living areas of the home for easy care and maintenance. High vaulted ceilings creating an open and airy feeling. Just to the left of the foyer is the formal living area or use as a gaming area. Then it's the formal dining area with buffet niche, perfect for entertaining. To the left of the stairs is the great room, complete with a built-in fireplace entertainment panel. Wet bar area with beverage fridge. A guest room with en-suite bath to the right of the great room with a separate exit, perfect for overnight guests, or can be used as a den or office. Massive kitchen area with plenty of storage space for all one's cooking needs. Tons of countertop space, with eat-up bar seating. All top-of-the-line stainless steel appliances, including an 8-burner gas range with griddle, dual door sub-zero fridge and freezer. The kitchen area circles back around to the formal dining area, making entertaining your guests a breeze! Head up the stairs and your master suite is just to the left, complete with high vaulted ceilings, built-in fireplace panel and built-in shelving. Master bath is made for relaxation with a soaking tub, oversized shower with multiple shower heads, and dual sink vanities and lots of storage space, and a walk-in closet, complete with built-ins. An additional two guest bedrooms, bathroom and laundry area can also be found on the upper level. The backyard is an entertainer's paradise! Covered patio area providing plenty of space for patio furniture. Take a dip in your refreshing private pool, relax in your own private cabana, or whip up a feast on the outdoor BBQ! Back yard is beautifully landscaped with a mixture of grass and desert landscaping, giving one plenty of room for outdoor games, a kid's playground, or just to enjoy the desired Arizona weather! Block fencing with hedge trimming surrounding you for privacy. Tucked away for that small neighborhood feel, but just a minutes' drive to all the surrounding shopping, restaurants, and lifestyle that Scottsdale has to offer. This is living on Paradise Lane!

17518 E Whitethorn Drive Rio Verde, AZ 85263

$1,290,000 - 4Br/4Ba -  for Sale in None, Rio Verde
Open House
$1,290,000
4 Beds
3.5 Baths
3,651 SqFt
Status Active
MLS # 6735190
Property Type Single Family Residence
Price Type --
Nestled on a peaceful road among breathtaking mountain vistas, this home offers unparalleled resort-style living in serene Rio Verde. A thoughtfully designed split floor plan allows for privacy with the primary bedroom split to one wing, away from the other 2 bedrooms in the main house. An attached 1bed/1bath casita is accessible from the back patio. Entertain effortlessly in the great room with a cozy fireplace, a huge built-in entertainment center, a sophisticated built-in bar, and game room with space for a pool table. Adjacent is the chef's kitchen with a large island, granite countertops, stainless steel appliances, and a walk-in pantry. Versailles pattern travertine & engineered wood floors as well as other beautiful finishes throughout the home. The deluxe master has an oversized bath suite with an adjoining room that can be used as an office, workout space, or an extra closet. Stunning views of the Tonto National Forest serve as a picturesque backdrop while you're relaxing in the sparkling pool or in the new above ground hot tub among beautiful landscaping and wide-open skies. Additional upgrades in addition to the new hot tub include 2 new A/C units in 2022, an RV Hookup with it's own separate breaker, and an extensive critter fence installed around the perimeter. Don't miss this invitation to luxurious living here in Rio Verde!

9344 E Via De Vaquero Drive Scottsdale, AZ 85255

$1,290,000 - 3Br/3Ba -  for Sale in Dc Ranch Parcel 1.13, Scottsdale
Open House
$1,290,000
3 Beds
3 Baths
2,769 SqFt
Status Active
MLS # 6727480
Property Type Single Family Residence
Price Type --
Located in the highly sought-after DC Ranch community, this move-in ready Terraces West home offers 3 bedrooms, 2.5 baths, with the master bedroom conveniently on the ground floor. The open floor plan, complete with separate living, dining, and family rooms, is perfect for entertaining. Situated on a north/south cul-de-sac lot with no homes across the street, this home provides stunning views of the McDowell Mountains. If you're looking for a DC Ranch property in The Terraces, this is the perfect opportunity to make it yours!

555 S Cactus Wren Street Gilbert, AZ 85296

$1,289,000
3 Beds
3 Baths
2,554 SqFt
Status Active
MLS # 6771575
Property Type Single Family Residence
Price Type --
Move in ready, fully remodeled, acre lot in North Gilbert. Property includes 18 mature pecan trees with fencing and horse corral. This home features a new open floor plan that radiates from the finished Arizona room. The converted primary suite includes a new walk-in closet and upgraded primary bath. All renovations performed by licensed contractor. Don't miss the newly constructed, and permitted, workshop. This multi-purpose steel outbuilding has unlimited possibilities, with access directly from the driveway. No HOA, irrigated lot, the list goes on. Don't miss an opportunity to own this classic Gilbert acreage.

2521 W Pumpkin Ridge Drive Anthem, AZ 85086

$1,289,000
4 Beds
3.5 Baths
3,290 SqFt
Status Active
MLS # 6780784
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the prestigious Anthem Country Club! This stunning 4-bedroom, 3.5-bathroom Sonoma model sits on an elevated lot, offering sweeping views of the 17th hole of the Persimmon Golf Course, lush desert, majestic mountains, and twinkling evening lights. The spacious 3,290 sq ft layout includes a versatile den and a 3-car garage, all set on a serene 0.254-acre lot. Inside, a gourmet kitchen awaits with gleaming granite countertops, stainless steel appliances, and rich dark wood cabinetry. The open-concept layout flows seamlessly into the cozy family room and dining spaces, perfect for entertaining or simply enjoying the view. The owner's suite is a true retreat, featuring a luxurious tile walk-in shower and ample space for relaxation. Step...CONTINUE READING... ...outside to the backyard oasis where you'll find an expansive patio with an outdoor BBQ/bar area under a pergolaideal for al fresco dining. Unwind in the negative edge spool, heating up to 104°, with a tranquil cascading water feature. Whether you're soaking in the vibrant sunsets or hosting friends, this low-maintenance, meticulously landscaped yard offers the best of Arizona outdoor living. Experience resort-style elegance every day in this breathtaking Anthem Country Club home!

16779 W Holly Street Goodyear, AZ 85395

$1,287,000
3 Beds
2.5 Baths
3,134 SqFt
Status Active
MLS # 6773405
Property Type Single Family Residence
Price Type --
This beautiful Cristall 3-bedroom, 3-bathroom home offers 3,134 sq ft of luxurious living space with golf course view. The home features a stacked stone exterior, a beautiful custom front door and front courtyard. The resort-style backyard is perfect for entertaining with an extended covered patio, lighted pergola, lounging areas with Tiki torches, a built-in BBQ island, 2 firepits, a water feature, and above-ground spa—all overlooking the 14th hole of Tuscany West. The gourmet kitchen is ideal for hosting, featuring a large island, upgraded cabinets, granite countertops, GE Monogram stainless steel appliances, a butler's pantry, and walk-in pantry. The spacious great room offers a stone fireplace and custom media center, with views from the great room, dining area, and main and bedroom. Off the kitchen is a cozy morning room that provides a perfect spot to relax. The primary bedroom offers a serene retreat with an ensuite bathroom featuring dual vanities, a soaking tub, walk-in shower, and large walk-in closet. A second bedroom includes a private bath, while the third bedroom near the front could double as a den or office. Additional features include a 3-car garage, owner-owned 34 solar panels, and a spacious laundry room. Located in the PebbleCreek active adult community, enjoy golf, swimming pools, pickleball, tennis, fitness center, and more.

26720 N 156th Street Scottsdale, AZ 85262

$1,285,000
3 Beds
2.5 Baths
2,633 SqFt
Status Active
MLS # 6773995
Property Type Single Family Residence
Price Type --
Tucked in off the main roads sits this beautifully maintained home on 2.26+ acres w/ lush desert foliage. So many flora colors & different plants feels like a desert oasis. Bring your toys & horses & enjoy the temperature-controlled man cave/shop/extra garage, 2-stall mare motel w/ good sized arena. Lots of room to give you extra privacy & room to add more features. Relax on the patio & enjoy the peacefulness of the desert, watch the sunrise over Four Peaks & take a dip in the gated pebble tec pool w/ waterfall for that unmatched AZ experience. Great open kitchen w/ plenty of room for the chef to entertain guests. Generous cabinets/countertop space & eat-in kitchen along w/ a nicely sized formal dining space. A final bonus: a timed-irrigation raised bed layout for that gardener who.... loves home-grown vegetables & flowers. If you're looking for a spacious desert retreat that's also very quiet & private, this one is a must-see.

40 E Apache Road Munds Park, AZ 86017

$1,285,000
6 Beds
4 Baths
4,556 SqFt
Status Active Under Contract
MLS # 6762176
Property Type Single Family Residence
Price Type --
This custom built luxury home is not to be missed. With over 4500 square feet of living area, six bedrooms, four baths and on nearly a one-acre flat usable lot, this chalet is loaded with upgrades and charm. The open great room has walls of windows and a stone-faced floor to ceiling wood burning fireplace. The kitchen has stainless appliances, granite countertops, breakfast bar and a walk-in pantry. Separate dining area. Main floor en-suite primary with a shower and a jetted soaking tub. Huge open loft area that overlooks the great room. As a special perk, there's a separate apartment with a private entrance that has a large bedroom, full bath, great room and kitchenette. Two car garage, an RV garage and lots of other parking options. Sold mostly furnished and at under appraised value.

30407 N 54th Street Cave Creek, AZ 85331

$1,285,000
5 Beds
3.5 Baths
3,884 SqFt
Status Active
MLS # 6686219
Property Type Single Family Residence
Price Type --
This luxury Toll Brothers home in the highly sought after gated community of Montevista in Cave Creek is just a short walk from the community park, with sport courts and a children's playground! An exquisite 5 bdrm, 3.5 bath residence with professionally designed landscaping, Travertine pathways & a grand courtyard entry! The turreted entry opens to the formal dining room & large media room with a 135-inch movie screen. The core of the home lies in the spacious great room which provides gorgeous backyard views and ample space for all social gatherings. The chef's kitchen is warm and welcoming and features stainless steel appliances, granite counters, dining area, breakfast bar, and a convenient desk area for studying or office work. The split primary suite is located downstairs and is a retreat that boasts soft carpet, a lavish ensuite w/dual vanities, large 6-ft soaking tub, oversized shower, and a spacious walk-in closet. Two additional bedrooms are also downstairs, currently being used as offices, and share an updated Jack-and-Jill bathroom. That's not all! There are two more bedrooms and another updated bathroom upstairs, with a cozy loft area. That backyard oasis is a dream, featuring a refreshing 8-ft deep Pebble Tec pool with water feature, paved covered patio and low maintenance landscaping, including mature citrus trees! Close to highly rated Cave Creek schools and short drive to shopping/dining in Old Town Cave Creek and Carefree to the north and Desert Ridge Marketplace to the south.

36460 N Secret Garden Path San Tan Valley, AZ 85140

$1,285,000
3 Beds
3.5 Baths
2,658 SqFt
Status Active
MLS # 6705640
Property Type Single Family Residence
Price Type --
Rare and very desirable Cordoba floor plan with 3 bedroom suites plus powder room, separate office AND a gorgeous golf course lot! Light and bright open great room concept with views of the 6th tee! Enter through custom iron front door into this beautiful home, with light wood floors in the main rooms, shutters , and cozy fireplace for those chilly Arizona winters! The dream kitchen offers B/I Monogram appliances, with elec cooktop that could easily convert to gas and huge W/I pantry!! Light stone counters with subway tile and light cabinets make this home a canvas to add your own color accents and style! The main bath has double sinks, a walk in shower, separate oval tub and large walk in closet. Location, view and floor plan make this one all the best of the Encanterra lifestyle!

22752 S 226th Place Queen Creek, AZ 85142

$1,285,000
4 Beds
2.5 Baths
4,225 SqFt
Status Active
MLS # 6733802
Property Type Single Family Residence
Price Type --
Elegance Meets Opulence: A Must-See Gem! Step into the epitome of luxury living with this architectural marvel. Beyond being a house, it's a sanctuary promising an elevated lifestyle filled with comfort and convenience. Here are some standout features: Designed Landscaping: Meticulously landscaped surroundings set the tone for opulence. Natural-Stone Covered Backyard Patio: Entertain or unwind in your private oasis. Big Pool with Water Features: Dive into crystal-clear waters with enchanting water features. Gazebo with Outdoor Furniture: Relax in the shade, surrounded by elegant outdoor furniture. Whole-House Six-Zone Audio System: Rich music flows seamlessly throughout. 13kW Tesla Solar System with Four Power Walls: Sustainable energy backup keeps you powered. 3-Car Air-Conditioned Garage with Level 2 Tesla EV Charger: Ideal for car enthusiasts. 16-Camera Video Security System: Comprehensive security for peace of mind. Home Security Alarm System: Ensures safety for you and your loved ones. Fireplace: Cozy up by the warm glow, unmatched in comfort. This masterpiece caters to every aspect of modern living.

8876 S Santa Elizabeth Drive Goodyear, AZ 85338

$1,285,000
5 Beds
4 Baths
5,070 SqFt
Status Active
MLS # 6753744
Property Type Single Family Residence
Price Type --
Welcome home to your very own piece of paradise nestled in the scenic Estrella Mountain foothills. This eclectic 5070 sq ft. custom home sits on 1.25 acres, and features a fully owned 25.6kw solar panel system. Just beyond the front door of this gorgeous home lies the courtyard, complete with a barbecue area and swimming pool. A winding concrete pathway leads you through your personal oasis to access both the 2 bed 1 bath casita and the additional 1 bed 1 bath casita- perfect for multigenerational living or generating additional income. Past the courtyard is the fully-featured primary residence, which includes a private office, 2nd bedroom, formal dining room, as well as a second-story deck to watch the Arizona sun set over the beautiful Estrella Mountains.... In the kitchen, the sleek granite countertops, luxury stainless steel appliances, and walk-in pantry integrate seamlessly with the family room, both a chef's dream and the pride of any avid entertainer. The primary bedroom features a double fireplace, a spiral staircase to the sunlit upstairs loft, and a New Orleans inspired en-suite bathroom with a step-up jetted hot tub, dual vanities, dual walk-in closets, and a luxurious walk-in shower. Don't miss this opportunity to live the resort lifestyle! HIGHLIGHTS OF ESTRELLA MOUNTAIN RANCH RESORT LIVING: 2 lakes (Yacht Club supplies paddle boats, kayaks) 2 Resident clubs houses w/fitness centers, AMAZING WATERPARK, plus 2 heated pools (1 lap pool) MILES AND MILES OF MOUNTAIN BIKING AND HIKING TRAILS. Golfing, Community Parks with Basketball and Tennis Courts, Pickle Ball, and Playgrounds. What are you waiting for?

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