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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4438 E Camelback Road Unit 154 Phoenix, AZ 85018

$1,200,000
3 Beds
2.5 Baths
2,840 SqFt
Status Active
MLS # 6673033
Property Type Townhouse
Price Type --
The most desirable location, The Village At Camelback Mountain. this end unit features patios on 3 sides. It boasts fresh paint thru out, newer carpet, updated kitchen with granite countertops with recent appliances, including a dishwasher and refrigerator-2020. The home features beautiful new tile flooring newer oak cabinets, and updated Mstr. bath with granite countertops,newer cabinets, and tile floors. All 3 bedrooms are located upstairs. The master suite includes an en-suite bathroom,while the 2 additional bedrooms share a second bathroom. There is also a 1/2 bath downstairs for guests. The great room includes a fireplace. There is a formal dining rm + a breakfast bar. The wrap-around covered patio adds to the charm. Amenities include 2 community swimming pools, (see more) two community tennis courts (one with pickle ball), an guard gate. Located next to Village Tennis Club, this prime location is just 10 minutes from the airport and close to Scottsdale shopping and dining options like The Henry and Steak 44.

3051 W Sousa Court Anthem, AZ 85086

$1,200,000
4 Beds
3.5 Baths
4,704 SqFt
Status Active
MLS # 6738775
Property Type Single Family Residence
Price Type --
Be prepared to be impressed! Located in the heart of Anthem, Arizona, this home exemplifies modern living at its finest. Step inside this beautiful home and be greeted by new carpet throughout, custom paint, shutters, and custom light fixtures. In the master suite you'll find a home office, rod iron divide, custom curtains, and custom closets from California closets. In the kitchen you'll notice custom granite and backsplash, double ovens, updated microwave, fridge, and stove, plus reverse osmosis. In the living room there is a custom built in entertainment center and custom fireplace mantel. Laundry room custom cabinets from California closets. Added theater room with soundproofing, blackout room, projector, and speaker. Surround sound through the house. Home is set up to be a smart home. There is a second home office plus additional bedroom/den and kids study/desk area. Home could be made into 6 bedrooms with the office and den. Formal dining, breakfast bar, and great room in the home. In the garage you'll find custom garage cabinets, tank-less water heater, and soft water system. On the exterior there are 3 air conditioners, one original, one 7 years old, and one 5 years old all in good working condition. Roof was replaced 7 years ago. Plus UV sun shades on windows. In the backyard turf has been added, outside kitchen and seating area with fireplace, 2 grills, place for 5 TV's, pool 10 ft deep and spa with slide and waterfall, plus added exterior gates. Courtyard and intercom system in the front plus home set up for a security system. Replaced/repaired windows in the entire house. Added more rock and repaired the drip system and landscape clean up. Replaced almost all ceiling fans. Replaced all door handles. Owners have been in the home for 22 years and took great care of it.

10804 N 146th Avenue Surprise, AZ 85379

$1,200,000
6 Beds
3.5 Baths
5,167 SqFt
Status Active
MLS # 6756033
Property Type Single Family Residence
Price Type --
Welcome to the rapidly growing city of Surprise! This 5,167 sq ft home on a one-acre lot is perfect for a family and entertaining! It features a massive 6ft deep pool, jacuzzi, bar/grill area, and a private 18-hole golf course with 2 sand pits. Inside, the open kitchen has custom cabinets, stainless steel appliances, a built-in fridge, granite countertops, an island, and a butler's area for food preping. The massive owner's suite offers a sitting area, dual sinks, and a large walk-in closet. Upstairs, there are 5 more bedrooms, game and media rooms, and recessed lighting throughout. With a solar roof, security cameras, 10+ 30ft palm trees, a 4-car garage, and built-in storage, this home has it all!

5850 E Le Marche Avenue Scottsdale, AZ 85254

$1,200,000 - 4Br/3Ba -  for Sale in Spanish Wells 3 Lot 311-411 Tr A-c, Scottsdale
Open House
$1,200,000
4 Beds
2.5 Baths
2,421 SqFt
Status Active
MLS # 6760120
Property Type Single Family Residence
Price Type --
Experience the perfect blend of masterful design and contemporary luxury in this stunning Spanish-style home, ideally situated in the much sought-after Scottsdale community of Spanish Wells. The meticulously landscaped exterior pays homage to the beauty of the Southwest while being lush and green. Step inside to find an inviting, light-filled space adorned with calming neutral tones, allowing for personal expression and style. The kitchen offers an expansive quartz center island that serves as a striking centerpiece, surrounded by ample cabinetry, sleek quartz surfaces, and stainless-steel appliances. The true highlight of this home is the outdoor oasis, a breathtaking lush landscape complete with a sparkling blue pool and multiple patio areas, perfect for enjoying the Arizona sunshine! Adjacent to the kitchen is a charming breakfast nook that boasts a generous bay window with an inviting view of the lush landscaping, multiple patios and sparkling pool. The family room, anchored by a beautiful fireplace and yet more great views of the resort style backyard and pool invites relaxation and tranquility. Each of the spacious bedrooms offers comfort and versatility for any family

5121 E Windrose Drive Scottsdale, AZ 85254

$1,200,000 - 4Br/2Ba -  for Sale in Cactus Glen 2, Scottsdale
Open House
$1,200,000
4 Beds
2 Baths
2,244 SqFt
Status Active
MLS # 6775668
Property Type Single Family Residence
Price Type --
Welcome home to this gorgeous remodel with a brand new pickleball court directly across the street from Sonrisa Park! The rose studded walkway is the first to welcome you to your beautiful new home. Through the front door, you are met with an open floor plan featuring a spacious dining room, home office overlooking the park, living room with a cozy honeycomb fireplace, and a beautiful modern kitchen. The kitchen boasts of waterfall quartz countertops, solid wood shaker cabinets and a large walk-in pantry with tons of extra storage. The primary bedroom overlooks a floral atrium, walk-in closet, custom slat barn door, and a beautiful bathroom with LED light accents. Outside the 8' accordion door, you will find a massive diving pool, mature citrus trees, and pickleball court. A MUST SEE!

2136 E Paradise Lane Phoenix, AZ 85022

$1,200,000 - 4Br/3Ba -  for Sale in Na, Phoenix
Open House
$1,200,000
4 Beds
2.5 Baths
2,930 SqFt
Status Active
MLS # 6766023
Property Type Single Family Residence
Price Type --
Set to complete December 1st 2024 Trade Conformity for True Freedom: The Solara Estate Welcome to The Solara Estate at Paradise Lane, —a masterpiece set to complete in December. Elegance meets the freedom to live life on your terms. With no HOA and an expansive RV garage, this property is perfect for those who crave convenience & flexibility. This isn't just a house; it's a lifestyle waiting for you to step in. Picture this: You drive up and are instantly greeted by the circular driveway entrance. You park right in front and you walk through those impressive 8-foot pivot doors. The soaring 16-foot ceilings & oversized windows let in an abundance of natural light, filling the space with warmth and vibrancy. This is more than a grand entrance; it's an invitation to live boldly. Now, let's talk about the heart of the home the kitchen. Imagine double waterfall islands dressed in exquisite quartz, against creamy white oak hardwood floors. A double oven for those culinary masterpieces, and a 36 cooktop that's begging for your next dinner party. Oversized Pantry with cabinetry Whether you're a seasoned chef or just love hosting, this kitchen is your canvas for creativity. Every detail in The Solara Estate tells a story. The white oak solid wood cabinets and hardwood floors bring a sense of warmth, while sleek floating vanities and a striking 100 fireplace add a touch of sophistication. And the master suite? It's your personal spa retreat, complete with a freestanding tub and a his-and-hers closet that dreams are made of. But let's not forget about the craftsmanshipit's a harmonious balance of strength and elegance, thoughtfully designed to embrace sustainability. With energy-efficient spray foam insulation, soundproof interior walls, and a tankless water heater, this home is built not just for today, but for a future that respects our planet. Now, imagine living herejust minutes away from shopping, dining, and those breathtaking hiking trails that call your name. Just 5 min from the coveted Basis School. The Solara Estate is a rare gem in this serene North Phoenix neighborhood, offering contemporary charm and ample space for all your adventures and toys. And here's the kicker: the landscape and pool are a blank canvas, ready for your personal touch on an over 20,000 square ft. lot. Dreaming of summer barbecues by the pool? Need to build a workshop or guesthouse? The possibilities are endless. Just keep in mind, all renderings are conceptual and subject to change. Pool to be completed after closing. This is more than a real estate opportunity; it's a chance to claim your own slice of paradise. At The Solara Estate, you're not just buying a home; you're embracing a lifestyle of true freedom. Don't miss out on this exclusive opportunity to live the life you've always dreamed of. Your new beginning starts here!

7760 Gainey Ranch Road Unit 13 Scottsdale, AZ 85258

$1,200,000 - 2Br/3Ba -  for Sale in Golf Cottages At Gainey Ranch, Scottsdale
Open House
$1,200,000
2 Beds
3 Baths
2,073 SqFt
Status Active
MLS # 6778369
Property Type Townhouse
Price Type --
This ''Jewel of the Desert' luxury townhome has incredible views from virtually any room in the house. Mosaics, quartz surfaces and silver strand hardwood floors displayed throughout. From kitchen you can look out the 15 ft., sliding wall of glass to golf course, water, Gainey Hyatt and Camelback Mountain. 2nd bedroom en suite, 3 FULL baths. The master suite and sitting room enjoy the same great views. Master Sitting/Rm can be office or constructed into an oversize Master walk-in closet. Oversized resort backyard with BBQ for entertaining. All the amenities one would expect from Gainey Ranch. Close by paths, restaurants, & shopping.

4211 E Desert Vista Trail Cave Creek, AZ 85331

$1,199,999 - 4Br/4Ba -  for Sale in Saguaro Trails, Cave Creek
Open House
$1,199,999
4 Beds
3.5 Baths
3,396 SqFt
Status Active
MLS # 6614075
Property Type Single Family Residence
Price Type --
Homesite 11-Overton-Our most popular floorplan featuring the casita and features a private ensuite bathroom, making it the ideal retreat for guests or the private home office. The primary bathroom is a wow with the optional walk in shower included. Other options included in this home are the 16' center slider door at the great room,. Designer curated finishes throughout including upgraded cabinets, flooring, and quartz countertops. Chef like stainless steel kitchen appliances included. Gorgeous hardwood floors included

12431 N 76th Place Scottsdale, AZ 85260

$1,199,999 - 4Br/3Ba -  for Sale in Buenavante 2 Mcr 218-20, Scottsdale
New
$1,199,999
4 Beds
3 Baths
3,039 SqFt
Status Active
MLS # 6783215
Property Type Single Family Residence
Price Type --
Investor special in a prime Scottsdale location! This property presents a unique opportunity for those looking to renovate or update this incredible property that offers a sprawling lot with endless potential—perfect for creating a custom masterpiece or a profitable remodel.. The kitchen, remodeled in 2013, features top-of-the-line appliances including a Sub-Zero refrigerator, Wolf ovens, a Viking stove, and a built-in microwave. Elegant Carrara Italian marble countertops complete this luxurious space. Additionally, the home includes a side basketball court—perfect for recreation and entertaining. With incredible potential and a desirable location, this is a fantastic opportunity to add value and make this home your own. Don't miss out on this investment gem! Located in an area surrounded by $4M+ estates, this property has all the makings of a high-value transformation. Don't miss your chance to seize this rare find and bring new life to a fantastic piece of Scottsdale real estate! SEE PRIVATE REMARKS FOR INSTRUCTIONS - DO NOT DISTURB OCCUPANT!

101 S Falling Leaf Road Show Low, AZ 85901

$1,199,999
4 Beds
4 Baths
3,081 SqFt
Status Active
MLS # 6717423
Property Type Single Family Residence
Price Type --
Live the mountain dream with this stunning Torreon 16th Fairway home! Situated on just under an acre with 4 beds 4 baths, you'll have plenty of space to entertain family and friends. The large paver driveway invites you to the exquisitely finished home. Custom features like the metal railings are sure to impress. The kitchen offers generous prep, storage, and seating space. Organize your supplies with ease with the walk-in pantry. A loft featuring a wet bar adds to the entertainment space. The owner's suite is sure to be your peaceful retreat at the end of the day, with an en suite, and tons of options with the sitting room off the owner's suite.

9539 W Villa Chula -- Peoria, AZ 85383

$1,199,999
3 Beds
3.5 Baths
3,318 SqFt
Status Active
MLS # 6733567
Property Type Single Family Residence
Price Type --
Desirable Meadows Subdivision Home - Triana Farmhouse Model by Toll Brothers! Welcome to your dream home in the sought-after Meadows subdivision! This stunning single-story Triana Farmhouse model, built in 2020 by Toll Brothers, offers modern living with timeless elegance. Key Features: **Layout:** Spacious 3-bedroom split floor plan with a den/office, perfect for remote work or a quiet retreat. **Kitchen:** The large kitchen boasts a massive island, quartz countertops, and elegant white shaker-style cabinets, ideal for cooking and entertaining. **Living Spaces:** Enjoy the open feel with 9'+ ceiling heights throughout the home. **Outdoor Living:** Both the front and backyard are beautifully landscaped for low maintenance and are perfect for entertaining. **Garage:** Ample storage with a 3-car garage equipped with epoxy floors and custom garage cabinets. **Courtyard:** A beautiful enclosed courtyard provides added security and privacy for outdoor entertaining during the cooler months! **Energy Efficient:** Owned outright solar system means no electrical bill. **Primary Suite:** The large primary bedroom and bathroom include a stunning walk-in closet. This home is a perfect blend of comfort, style, and functionality.

4497 E Carriage Way Gilbert, AZ 85297

$1,199,999
7 Beds
4.5 Baths
5,816 SqFt
Status Active
MLS # 6744372
Property Type Single Family Residence
Price Type --
*$85K price reduction* Welcome to this beautiful Toll Brothers basement home in award winning Power Ranch. Offering 7 bedrooms + a den + a loft, 3 car garage and swimming pool with rock waterfall and slide. End the evening by the fireplace in the living room. Entertain or cook for loved ones in the grand kitchen with spacious island with copper island sink, built in double ovens, farm sink and much more. Basement includes two bedrooms, one full bath, game room/family room + storage closet. Main level includes a den, living room, dining room w/ adjacent butler's pantry, family room & the incredible kitchen and breakfast nook, a pantry and laundry room. The top level includes a private primary suite with sitting room, an updated bath with stand-alone tub, walk in shower with gorgeous work, dual vanities and a walk-in closet. Down the hall is a loft with two bedrooms on each side of the loft - and two bathrooms. Enjoy Arizona outdoor living in the pool with new pebble Tec and have fun for hours sliding down the waterslide.

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