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.

Click Here to See What Your Home is Worth

15921 E Primrose Drive Fountain Hills, AZ 85268

$1,250,000
5 Beds
3.5 Baths
3,200 SqFt
Status Active
MLS # 6775263
Property Type Single Family Residence
Price Type --
Imagine waking up to the soft glow of dawn as the sun rises over Four Peaks while you cozy up with a cup of coffee. That is just a glimpse of what awaits you in this designer-inspired semi-custom 2022 built contemporary Fountain Hills home. Experience the rich blend of casual elegance & eclectic comfort accentuated with soaring 20' vaulted ceilings and views that stretch for miles. The striking open concept great room, dining room and kitchen flow effortlessly and are ideal for family gatherings or entertaining with direct patio access to experience Arizona's coveted indoor/outdoor lifestyle. Natural light abounds through 8'x8' windows and sliders throughout, complemented by wood-look tile floors. The great room's contemporary linear LED fireplace is framed by art niche shelving and accent lighting. The dining room offers a 10' dry bar with generous cabinetry, floating shelves and wine and beverage refrigeration. Here, the kitchen truly is the heart of the home with a 12 foot waterfall edge island with seating for six. The culinary enthusiast will appreciate the attention to detail with quartz counters, soft-close white shaker cabinets, a Samsung appliance package with multiple ovens and a pot filler for those family spaghetti dinners. It is from the sanctuary of your primary retreat where you'll watch the sunrise over the city and mountains beyond or step onto the secluded backyard patio. The split floor plan provides four additional bedrooms. The first guest room offers an ensuite, two more bedrooms share a jack-and-jill bathroom. The fifth bedroom is utilized as a light and bright office with perhaps the best views of all. Movie nights can be enjoyed in the media room. The laundry and powder rooms complete your single story living. Down the stairs you'll find a three car air-conditioned garage and storage room. The owners have ensured the paver driveway is ideal for easy garage access with thoughtful expansion. Your tiered backyard is private and offers a heated spa and resort feel, plus your four-legged friends have their own fenced space. The front patio is expansive and your guests will arrive as they ascend paver steps with a sleek iron rail. This is your exclusive opportunity to experience the Arizona lifestyle and all that Fountain Hills has to offer, with its world famous fountain, world-class golf, hiking, biking, arts and culture all out your door.

26715 N 168th Street Rio Verde, AZ 85263

$1,250,000
4 Beds
3 Baths
2,594 SqFt
Status Active
MLS # 6774784
Property Type Single Family Residence
Price Type --
Welcome to Whispering Canyon - a breathtaking 3.5-acre desert retreat in Rio Verde Foothills! This luxurious 3-bedroom, 3-bath property, complete with a charming guest casita, is perfect for a family compound or serene getaway. The main home features an open layout w/ high ceilings, abundant natural light, and elegant finishes. The gourmet kitchen boasts premium appliances and a spacious island, ideal for entertaining. The master suite offers a spa-inspired bath, walk-in shower, and ample closet space. Outdoors, enjoy stunning views, a covered patio, & pristine desert landscaping. Whispering Canyon is equipped with a 10,000-gallon water tank by Dynamite Water & permanent water service approved by EPCOR, ensuring reliable access. Embrace the ultimate desert lifestyle in comfort & style.

2200 E Aquarius Place Chandler, AZ 85249

$1,250,000 - 4Br/3Ba -  for Sale in Windermere Ranch, Chandler
New
$1,250,000
4 Beds
3 Baths
3,315 SqFt
Status Active
MLS # 6783026
Property Type Single Family Residence
Price Type --
Welcome to an exquisite residence nestled within the prestigious gated community of Windermere Ranch, where unparalleled luxury meets modern sophistication. Built in 2019, this opulent 4-bedroom, 3-bathroom haven offers a grand living experience, perfectly crafted for those with the most discerning tastes. Boasting the largest lot in the community, this home combines expansive space with intimate comfort, epitomizing the pinnacle of lavish living. Set within a serene enclave, this property boasts impressive street appeal with a custom iron entry door that welcomes you into a charming front courtyard adorned with a gas fireplace, all elegantly appointed with 12x36 inch porcelain tiles. The expertly designed landscaping and hardscaping, paired with WiFi-controlled waterfalls, create a tranquil ambiance that frames this remarkable home. Step inside to discover an interior filled with high-end upgrades and sophisticated design choices. The extended kitchen is a culinary masterpiece, featuring quartz countertops, a custom backsplash, state-of-the-art appliances, and ample cabinetry enhanced with undercabinet LED lighting. The island, complete with an integrated sink, makes for a functional yet chic space, perfect for entertaining. In the living room, soaring 12-foot ceilings and a stunning 60 linear gas fireplace, surrounded by custom Italian tile, create an expansive and luxurious gathering area. Enhanced with 5.1 speaker wiring and dimmable downlighting, the room is perfectly suited for both relaxed nights in or lively social gatherings. The primary bedroom suite is a sanctuary of relaxation, boasting an extended space with serene views of the backyard oasis. The primary bathroom is a spa-like retreat, featuring upgraded porcelain tiles and exquisite finishes throughout. Every detail has been thoughtfully curated, from the upgraded carpets in the bedrooms to the custom window shades in the music room and den. A central vacuum system and whole-house water softener ensure convenience and comfort at every turn. Outside, enjoy a lavish outdoor living space with a raised patio area tiled with 12x36 inch porcelain. Unwind under the expansive 19' x 20' pergola, or gather around the built-in linear gas firepit for unforgettable evenings under the stars. For the ultimate indulgence, a heated spa nestled on its own concrete pad awaits for soothing relaxation. This estate is a harmonious blend of indoor and outdoor living, finished with thoughtful touches such as upgraded exterior lighting fixtures, shade sails in the front courtyard, and a motion-activated pantry light. The complete exterior has been recently repainted, offering the perfect finishing touch to this distinguished home. With its formidable array of bespoke features, enhancements, and a prestigious location in Windermere Ranch, this exquisite residence stands as a testament to refined living. It is more than just a home, it is a lifestyle choice for those who seek the extraordinary.

5910 Velvet Valley Lane Flagstaff, AZ 86004

$1,250,000
3 Beds
2 Baths
4,006 SqFt
Status Active Under Contract
MLS # 6744334
Property Type Single Family Residence
Price Type --
TRULY AMAZING PROPERTY THAT BRINGS UNDEINIABLE VALUE! Beautiful Home, Oversized RV Garage, and a Studio / Showroom / Workshop that is Second to None! ALL OF THIS ON 2.5 ACRES! Come Unwind and Experience Heaven on Earth While Relaxing Next to the 175,000 Gallon Fish Pond or Work from Home in your Custom 2200 SF Expansive Workshop w/ Private Bath. Your Custom Built 1806 Sq Ft Home is Only Steps Away Including a 1200 Square Foot RV Garage, Horse Set Up / Stall and Additional Out Buildings. This Meticulously Maintained Property Shines and Pride of Ownership is an Understatement Featuring New Roof, Wood Grain Tile, High Vaulted Ceilings, Corian Countertops, Malapai Rock Accents, HUGE Primary Closet and So Much More. This Perfect Property is Absolutely the Most Ideal Home / Office Scenario!

10543 E Diffraction Avenue Mesa, AZ 85212

$1,250,000
6 Beds
4.5 Baths
5,260 SqFt
Status Active Under Contract
MLS # 6757090
Property Type Single Family Residence
Price Type --
Master planned community of Eastmark! This incredible home is perfect for entertaining & those that need LOTS of bedrooms & garage space! This amazing residence offers a chef's kitchen w/ gas stove, eat-in kitchen dining area, island seating, butler's area, huge walk-in pantry, & access to the outdoor kitchen! Plenty of storage with 6 bedrooms (each w/ walk-in closets), 4.5 bathrooms, separate dining room, den, loft, movie room w/ projection tv, 2 laundry rooms (1 on each floor) & 4+car garage w/ new epoxy coating. There is an abundant amount of storage in the extra closets upstairs and downstairs and the ensuite is the perfect retreat that includes a separate sitting area, oversized shower, soaking tub, separate vanities, enormous walk-in closet & additional linen closet. Enjoy indoor/ outdoor living through the 12' sliding glass door from the living room & relax by the firepit while your food is prepared in the outdoor kitchen, splash in the pool w/ waterslide, grotto & water features, or play ball on the new turf. The home feels brand new with the new carpeting & paint. Enjoy the Eastmark lifestyle at the community pool, activity center, Eastmark schools, clubs, programs, events, traditions neighborhood parks, restaurants, garden & more. Make this amazing property yours today!

32874 N 74th Way Scottsdale, AZ 85266

$1,250,000
3 Beds
3.5 Baths
2,544 SqFt
Status Active Under Contract
MLS # 6769027
Property Type Single Family Residence
Price Type --
FIRST TIME ON MARKET!!! Indulge in luxury at 32874 N 74th Way in Las Piedras, North Scottsdale, a 2544 sq ft residence nestled near Whisper Rock and The Boulders. This single-level home showcases desert views, a gated courtyard, full casita bath and casita prep room. Outdoor bliss awaits with two private patios, and a gas fireplace behnd the privacy of custom entry doors with speakeasy windows—perfect for entertaining amidst breathtaking Arizona sunsets. This end lot provides a full view of the beautiful desert mountains that are literally at the end of the culdesac! Custom flooring creates a warmth throughout the home. Towering ceilings and countless windows create for a light and airy environment. Custom cabinetry and a huge island make family gatherings perfect! All of this situa within a private gated community in one of the best neighborhoods in North Scottsdale. Home office can easily be converted into a 4th bedroom. Don't forget to visit the heated community pool/spa. The wait is over!!!! Come visit this masterpiece in the desert!

4471 S Gold Court Chandler, AZ 85248

$1,250,000
5 Beds
4 Baths
4,353 SqFt
Status Active Under Contract
MLS # 6766306
Property Type Single Family Residence
Price Type --
Highly upgraded home with a fantastic layout - see the additional docs tab for a FULL list of upgrades included OWNED solar & private home office! Not only is this home located in Fulton Ranch's Gallery neighborhood, it has a 2.875% ASSUMABLE VA loan - anyone, veteran or non-veteran can assume this loan! The home is well equipped for both entertaining & relaxing as your own private sanctuary - the kitchen is well equipped with a Viking cook top, GE Monogram oven, microwave & dishwasher, extra large island with breakfast bar seating, upgraded granite slabs, custom cabinetry, wine fridge, wine rack, upgraded step stone backsplash & and oversized pantry. The master en-suite is extra spacious, the bathroom features a custom walk-in shower, deep Kohler (click MORE for more features) deep Kohler soaking tub, private toilet room & large walk-in closet. The backyard truly is an oasis with mature landscaping (see upgrade list for details), heated pool with therapy jets, bubbler, waterspouts, waterfall, private outdoor fireplace, full-size covered patio, USA built-in Lynx grill, gas fire pit & larger travertine deck area! This home is not just about all the awesome features, the Fulton Ranch community has 2.5 miles of walking trails, 32 acres of lakes & waterfalls & grassy common areas for you to enjoy. If you're a golfer, you'll be close to nine different courses including 27 holes at the Ocotillo Golf Club which is a mile away from the home. It's located in Arizona's top school district with A+ Schools like Hamilton High School, CTA & Basis within 2 miles! The community is next to Intel and Price Rd technology Corridor with Intel, Northrup Grumman & other top employers close by. It's located about 25 mins from Sky Harbor and just minutes from downtown Chandler with its many great shopping areas restaurants.

733 W Moon Valley Drive Phoenix, AZ 85023

$1,250,000
4 Beds
3 Baths
2,932 SqFt
Status Active Under Contract
MLS # 6768910
Property Type Single Family Residence
Price Type --
Totally renovated and remodeled 4 bedroom, 3 bath home located on the 10th fairway of the Moon Valley Country Club championship Golf Course.

16619 E Sullivan Drive Fountain Hills, AZ 85268

$1,250,000
4 Beds
3.5 Baths
3,390 SqFt
Status Active Under Contract
MLS # 6780422
Property Type Single Family Residence
Price Type --
Hilltop masterpiece...single level sitting on 1.4 acres w/outstanding Mountain and Fountain views! Gorgeous curb appeal starting w/the full paver driveway & walkway to the front door. Enter to the high ceilings & open floor plan w/formal living & dining rooms/spacious family rm w/gas fireplace/open to the kitchen offering granite counters, island, double ovens, walk in pantry, built in desk & breakfast bar. Enjoy mtn views from the breakfast rm. Split bedrooms offer privacy/Wonderful master suite /huge walk in closet, large vanity/3.5 baths/lg laundry room w/ lots of storage. You'll love the screened in AZ room...this home is perfect for entertaining...with room for all! The large 4 car garage is great for the car enthusiast! The in ground hot tub is inviting after a long day! More... The roof was new in November, 2023, and comes with a 5 year warranty. Enjoy the comfort of knowing you'll have a 1 year home warranty. 1 year transferrable termite warranty. ADP Security system More great amenities include beautiful wood shutters, 2 - 100 gal propane tanks, skylights...and so much more. When you see this home you will see the pride of ownership!

657 Linger Lane Williams, AZ 86046

$1,250,000
8 Beds
4 Baths
3,444 SqFt
Status Active
MLS # 6641232
Property Type Single Family Residence
Price Type --
Discover a unique investment opportunity with this Grand Canyon Getaway featuring dual houses. Nestled right off Highway 180, this former general store has been meticulously remodeled to offer two distinct houses, each accommodating various guest preferences, whether it's a family retreat, couples escape, or a group adventure. The property seamlessly blends historic charm with modern comfort, providing a delightful stay for your guests. Its prime location ensures high demand from Grand Canyon explorers year-round, and with an 8% cap rate, this investment opportunity guarantees consistent income, thanks to its unique appeal and sought-after location. Experience the perfect fusion of history and comfort as the property's past as a general store adds a touch of nostalgia to the guest experience, complemented by modern amenities and tasteful decor. Don't miss this exceptional investment opportunity to capitalize on the allure of the Grand Canyon.

8371 Eagle Point Road Pinetop, AZ 85935

$1,250,000
5 Beds
4 Baths
3,688 SqFt
Status Active
MLS # 6657404
Property Type Single Family Residence
Price Type --
Amazing property and custom home now available in the prestigious Pinetop Country Club Community. This home is located on a RARE DOUBLE LOT in the heart of pine country. This property offers so much potential to enjoy the amenities of town while being surrounded by towering ponderosa pines. The property is located within easy walking distance to the Apache-Sitgreaves National Forest where miles and miles of outdoor fun awaits. Whatever your passions may be, this property offers the best of it all from a very short distance including golfing, hiking, biking, camping, hunting, fishing and the list goes on. The home is another wonder in and of itself. With impressive curb appeal along with top quality construction materials. This home was undoubtedly built to last and screams quality the moment you enter the front door. This home shows fantastic pride of ownership and attention to detail as a custom home should. As you enter the home, your eyes will be drawn to the warmth and beauty of the magnificent fireplace located in the center of the large living space. This feature is truly awe inspiring with floor to ceiling masonry work that more closely resembles custom art than a functional fireplace. The kitchen is spacious and open with plenty of working space offering custom solid cabinets, hard surface countertops and a large pantry. The floor plan is very family oriented with all five bedrooms having easy access to one of the four beautifully designed full baths. Three of the five bedrooms are conveniently located on the main floor including the master suite. The additional two bedrooms upstairs are each unique with one offering a nice balcony retreat. A large open den on the main floor offers a great space for families to gather and guests to enjoy while watching the game or entertaining at the built-in bar. This home has a comfortable professional office space that could be utilized in many ways depending on your needs. There is even a fun loft area set up for kids, grandkids or young at heart with plenty of space to entertain, play video games, sleep, or study. The home has a nice combination of beautiful hardwood flooring, travertine tile, and well-maintained carpets. There is a large back deck that creates a perfect spot to enjoy cool summer evenings grilling and chilling. This home showcases wonderful, exposed wood beams along with solid tongue and groove throughout, bringing the cabin feel to life while offering luxurious home comfort. Did I mention the home comes furnished? Wow, yes, the furnishings are included and as you will see many of the unique pieces match the high quality of the home. There is also a beautifully wooded .33-acre lot adjoining and directly behind the property (parcel 411-52-074) available for sale with a separate contract. If you have been waiting for the perfect family mountain retreat, or full-time home in the perfect location...wait no longer, make this one yours today!

10859 E Tierra Drive Scottsdale, AZ 85259

$1,250,000
3 Beds
2.5 Baths
2,758 SqFt
Status Active
MLS # 6726803
Property Type Single Family Residence
Price Type --
Rare opportunity to own an oasis unlike any other!! Welcome to your dream home, nestled on a large, 14,733 sq. ft. cul-de-sac lot within the prestigious community of Scottsdale Ranch. The Mountainview Place neighborhood, built by Golden Heritage boasts all single level homes for the ultimate in privacy. This exquisitely remodeled split floor plan; offers unparalleled luxury for living and entertainment. NO interior steps, and wide doorways make for safer seamless living. Step inside to be greeted by some of the finest luxury vinyl wood flooring available. This home was designed for a great lifestyle & entertainment. The primary suite is a private retreat situated on one side of the home, featuring a 198 square foot, custom built ''Closmahall'' walk-in closet you must see to believe! This room could also be perfect for a home office, gym, or nursery. Every detail of this home has been meticulously crafted for you. The heart of this home extends to an extraordinary, huge outdoor living space designed for the finest Arizona lifestyle. Enjoy an extra-large covered patio, 5 fruit trees, an outdoor chef's kitchen complete with a gas BBQ and built-in smoker, and a gorgeous, fenced sparkling pool with a travertine surround and brand new pebble tec finish. Multiple outdoor patios, a custom raised garden, and a large jacuzzi tub provide endless opportunities for relaxation and entertainment. There's nothing left to do but move in and start living the epitome of Arizona living. Luxury. Privacy. Perfection. Welcome Home!

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