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

14110 E Coyote Road Scottsdale, AZ 85259

$950,000

3 Beds

3 Baths

2,221 SqFt

Status Active

MLS # 6767391

Property Type Single Family Residence

Price Type --

If you like million dollar mountain views without the million dollar price tag, then look no further. This Hidden Hills gem backs up to the McDowell Mountains with spectacular views of the untouched desert scape, is steps away from miles of hiking trails, minutes to the Mayo Clinic & all the best that Scottsdale offers. This 3 Bedroom, 3 Bathroom single level home features an open concept chefs kitchen that flows into the great room + dining room. The oversized primary bedroom + ensuite bath with dual sinks, soaker tub & separate shower, and an ample walk-in closet. The secondary bedroom has it's own private bath, perfect for your guests. While the 3rd bedroom is separate from the other bedrooms, next to the guest bath. The true feature of the home is the expansive covered patio, that draws you outdoors to take in the breathtaking mountain views. With sparkling Pool + Spa, outdoor living & entertaining is a breeze. With the premier location + mountain views, this home won't last!

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27901 N Tranquilo Lane Rio Verde, AZ 85263

$950,000

3 Beds

2 Baths

2,595 SqFt

Status Active

MLS # 6781987

Property Type Single Family Residence

Price Type --

This home is fully updated! It's like buying a new home. New flooring, paint, fixtures, appliances, countertops, you name it, it has been updated. Plus the owner has impeccable taste so the decor looks like a designer did it. Though small in square footage, this house feels larger with 3 bedrooms and the open greatroom with a large TV. The bathrooms are beautifully done with granite and new flooring. There is even a golf room in the garage that could be a workroom, art room, craft room or exercise room because it's air conditioned. The backyard is completely fenced and has an attractive fountain to bring the sound of soothing water to a perfect backyard patio.

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20011 W Hilton Avenue Buckeye, AZ 85326

$950,000

3 Beds

2.5 Baths

1,585 SqFt

Status Active Under Contract

MLS # 6710736

Property Type Single Family Residence

Price Type --

HORSE PROPERTY IN BUCKEYE!!! RARE local, close to 5 acre irrigated lot, with two sectioned off pastures with gate access. Close proximity to I-10 and new Great Hearts school. Slump block home recently painted inside and out. Newer a/c with solar lease. Newer windows and flooring. Separate fenced backyard for the home with large covered patio. One covered corral, covered area that use to be additional corrals. A storage shed/tack room conveniently located next to pasture. 2 Covered RV parking spots with electrical hookups. Covered parking.

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1434 E Hoover Avenue Phoenix, AZ 85006

$950,000

4 Beds

3 Baths

2,372 SqFt

Status Active Under Contract

MLS # 6700939

Property Type Single Family Residence

Price Type --

Experience the perfect blend of modern luxury and convenience in this stunning home, ideally situated just minutes from the vibrant heart of Downtown Phoenix. This exquisite property boasts a sleek, contemporary design with expansive windows and high-end finishes that create an atmosphere of sophisticated urban living. The main house features an open floor plan that effortlessly flows from the spacious living area into a chef's dream kitchen. Equipped with state-of-the-art appliances, custom cabinetry, and a large center island, this kitchen is perfect for entertaining and culinary exploration. Step outside to your private oasis where a sparkling pool awaits, set in a beautifully landscaped backyard that offers a tranquil escape from the city buzz. Additionally, this property includes a charming 1-bedroom casita, providing privacy and comfort for guests or a peaceful home office space. The casita is just as modern as the main house, featuring a full kitchen, a cozy living area, and a private bathroom. This home's prime location allows for quick access to Downtown Phoenix's finest dining, shopping, and entertainment options, making it an exceptional choice for those seeking a stylish and convenient urban lifestyle.

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2895 N Silver Spur Drive Wickenburg, AZ 85390

$950,000

4 Beds

4 Baths

2,602 SqFt

Status Active Under Contract

MLS # 6717861

Property Type Single Family Residence

Price Type --

Calling All Car Enthusiasts—this stunning Santa Fe-style retreat in Wickenburg offers a brand-new, oversized garage/shop perfect for housing your prized collection in style and comfort! Located in the prestigious Saddle Ridge neighborhood. This magnificent custom-built residence boasts 3 bedrooms and 4 bathrooms, large office and huge extra shop/garage w 1/2 bath sprawling across an expansive 1.39-acre lot. Impeccable design and extensive recent upgrades make this home a true masterpiece, with significant investments ensuring top-notch quality and modern amenities. The open floor plan is a dream, featuring a gourmet kitchen equipped with the latest appliances, especially the awe-inspiring gas range that stands as a culinary centerpiece. Granite countertops, a large island, and a The owner's suite is a haven of tranquility, offering enormous closet spaces complete with built-in dressers and shelving, ensuring ample storage and organization. The luxurious en suite bathroom is designed for relaxation and indulgence, featuring double sinks, a walk-in shower, and a jetted tub. This home is brimming with remarkable recent improvements that enhance its appeal and functionality. New windows by Andersen Renewal flood the interiors with natural light, while the state-of-the-art solar system, complete with three backup batteries, ensures energy efficiency and reliability. Car enthusiasts will be captivated by the colossal 13,000-square-foot garage and shop, capable of housing up to five vehicles (8 in total with the garage). The backyard is an oasis of outdoor living, boasting a brand-new paver patio perfect for gatherings and relaxation. Comfort is paramount with two new A/C units out of three, ensuring a cool and pleasant atmosphere year-round. Additionally, a new washer and dryer add to the home's modern conveniences. This extraordinary Santa Fe-style home is the essence of luxury and comfort, offering a unique living experience in a stunning Arizona setting. Don't miss the opportunity to own this exceptional property, where every detail has been meticulously crafted to provide the ultimate in upscale yet casual living.

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935 E Libra Drive Tempe, AZ 85283

$950,000

5 Beds

3.5 Baths

2,885 SqFt

Status Active

MLS # 6757593

Property Type Single Family Residence

Price Type --

Just minutes from ASU, Tempe Marketplace, and with no HOA, this beautifully updated home features charming curb appeal, a 3-car garage, and a welcoming courtyard. Inside, sleek epoxy floors, fresh paint, and sliding glass doors fill the space with natural light. The gourmet kitchen boasts stylish grey cabinets, a prep island, and premium appliances. The owner's suite offers dual sinks, a chic barn door, and a large walk-in closet, while a second main bedroom with outdoor access is perfect for guests or short-term rentals. Step into your resort-style backyard with paver seating, lush artificial turf, and a sparkling pool and spa—ideal for entertaining. With easy access to major highways and Phoenix Sky Harbor, this home is a tr But wait, there's more! This gem includes a 2nd main bedroom with outdoor access. HUGE backyard showcases paver seating areas, artificial turf, & an enticing pool & spa for endless summer fun. You won't be disappointed!

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4307 E Turney Avenue Phoenix, AZ 85018

Open House

$950,000

3 Beds

2 Baths

1,384 SqFt

Status Active

MLS # 6781332

Property Type Single Family Residence

Price Type --

Nestled in the heart of Arcadia Lite, this beautifully updated home blends modern elegance with classic charm. Thoughtfully remodeled, this 3-bedroom, 2-bath gem offers an oasis of luxury living. The primary suite features an en-suite bath w/ a serene view of the lush backyard & diving pool bordered by mature citrus trees, & ample play space. Inside you'll find a cozy real wood-burning fireplace & an iconic mid-century potbelly stove, adding warmth & character to this modern farmhouse. The home also boasts an alluring just completed renovation including all new luxury vinyl tile flooring, interior/exterior doors, kitchen w/ Café appliances & quartz counters, stylishly renovated bathrooms, entryway gable, exterior siding, interior/exterior painting, hardscaping in front and back, front irrigation, front/back landscape, new lighting, new plastering in the pool, new water heater & a newly finished garage floor, laundry room & enclosure. Located minutes from top-rated dining & shopping, w/ stunning Camelback Mountain views, this home offers the best of Arcadia living. No HOA & located within the highly regarded Hopi school district. A Must-See!

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5309 E Barwick Drive Cave Creek, AZ 85331

Open House

$950,000

3 Beds

2.5 Baths

2,276 SqFt

Status Active

MLS # 6772511

Property Type Single Family Residence

Price Type --

Stunning move-in ready 3 bed/2.5 bath + office & 3 car garage in Montevista, a highly sought after Toll Brothers community. This smart home boasts gorgeous curb appeal w/ a private entry, thoughtful upgrades, and a beautiful low-maintenance turf yard. The open and spacious popular single level floor plan (San Pietra) offers a light & bright great room w/ gas fireplace and an eat-in kitchen with new quartz countertops, backsplash, and pendant lighting plus a gas range/oven, and large island w/ breakfast bar. The primary suite has a large walk-in closet with custom built-ins and an ensuite bath with dual vanities, separate soaking tub, and private toilet room. Split from the primary are two additional bedrooms, a full bathroom plus a den/office. The home also includes a powder bath adjacent to the great room and a large laundry room that includes a sink and access to the temperature controlled 3-car tandem garage. The backyard boasts a large low maintenance turf yard, a covered & uncovered patio, gas firepit, zero maintenance pergola, Turbo BBQ w/ storage, and gorgeous desert landscaping. Other upgrades include a Control4 Smart Home system, newer gas water heater (2022), newer HVAC (2023), water softener, reverse osmosis, remote control window shades, and more. The beautiful community of Montevista offers gated access, a large community park with sport courts and a children's playground. Conveniently located between Desert Ridge Marketplace & downtown Cave Creek, MV is about 10 minutes from the 101 loop, 51 fwy and Mayo Clinic, and an easy drive to Kierland, Scottsdale Quarter and several more popular destinations. The area also offers top-rated Cave Creek schools and convenient walking distance to Lone Mountain Elementary. This home is a must see.

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36908 N 19th Street Phoenix, AZ 85086

Open House

New

$950,000

4 Beds

2.5 Baths

3,279 SqFt

Status Active

MLS # 6779006

Property Type Single Family Residence

Price Type --

Meticulously maintained & enhanced custom home on an acreage in a cul-de-sac, only 15 minutes to TSMC, 20 minutes to a great game of golf at Boulder Resort, & 10 minutes to hiking in Cave Creek Regional Park. Electricity costs $100 avg monthly. Classic great room is bathed in natural light streaming thru two skylights, oversized windows and 8-ft glass doors. Gourmet kitchen w/ granite countertop, upgraded appliances, & 42-in cherry cabinetry. Jetted tub in primary bathroom. Full length patio with a built-in BBQ has views of mountains, your spacious backyard and the vast, endless sky. Four-car, air-conditioned garage houses 17 KW solar electric panels and EV charger. Walk over the bridge over arroyo to the shaded, fenced pool for a swim. Stargazing, gardening, sitting under the trellis gar listening to the sound of nature and soothing water feature in the backyard koi pond -- you can do all that from home -- your private sanctuary. Plenty of space for your loved ones and a carefree life style. Whenever you like, nearby I-17 can easily transport you out of the Phoenix heat to Flagstaff, Sedona, Prescott, Grand Canyon, etc. This is where you belong.

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3575 N Val Vista Road Apache Junction, AZ 85119

Open House

$950,000

3 Beds

3.5 Baths

2,730 SqFt

Status Active

MLS # 6776295

Property Type Single Family Residence

Price Type --

STUNNING DREAM HOME WITH VIEWS! Beautiful home in the Apache Junction Foothills. Views of the Superstition Mountains & city lights. Home appraised! This property has a 3-car detached garage/casita (with running water, bathroom/laundry rm, shop & murphy bed, 1600 sq ft). 3 RV pads w/ H2O, elect.,& sewer. Multiple parking spaces. (Full Amenities list in Documents tab) Gated courtyard has artificial turf. Living room has arched high ceiling, natural light, and a harmonious blend of soft carpet and tile flooring. Dining room, complete with a wet bar. Gorgeous kitchen, featuring granite counters, ample cabinetry with crown molding, recessed lighting, matching appliances, a pantry, and an island with a breakfast bar. Full backyard kitchen. Storage unit in the back.

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14715 W Medlock Drive Litchfield Park, AZ 85340

Open House

$950,000

5 Beds

4.5 Baths

3,910 SqFt

Status Active

MLS # 6776960

Property Type Single Family Residence

Price Type --

Looking for an exceptional 5 bedrooms, 4.5 baths with a beautiful pool in Litchfield Park? Let's start in the chef's kitchen with granite countertops, high end cabinets, upgraded stainless steel appliances, gas cooktop, oversized kitchen island with farmhouse sink. butler pantry plus large walking pantry. Master suite is spacious with a resort style bath. One bedroom downstairs with its own bath. Amazing backyard with a large sparkling pool and gazebo for all your entertainment needs. Backs to the community park. Close to shopping, loop 303, schools. Luke air force base and so much more.

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5320 E Thomas Road Phoenix, AZ 85018

Open House

$950,000

4 Beds

3 Baths

2,071 SqFt

Status Active

MLS # 6779645

Property Type Single Family Residence

Price Type --

Welcome Home to Thomas Rd in the coveted Arcadia Osborn neighborhood. Nearly every inch of this home has been remodeled &upgraded since 2019. Upgrades galore! Pull up & notice the semi-private front courtyard with an attached garage. Head inside and you will enter theheart of the home. This open concept living space brings together the dream white kitchen, dining space and family room complete with a wood burning fireplace. Bright neutral paint, faux like wood tiles & a vaulted ceiling complete w/ wooden beams, this space instantly feels cozy & welcoming. Checkout the master suite! This suite has an attached office/workout room/private living space w/ a private exit to the backyard. The en suite boasts separate sinks, separate tub and walk in shower & a custom walk-in closet (CONT) 2 of the additional bedrooms share a spacious guest bathroom with double sinks and ample storage. The 3rd bedroom has an en suite. The backyard is a true oasis. The custom heated pool was built in 2019 along with the addition of the new limestone pavers and tiles throughout the exterior. A private bar is set up that will be perfect for entertaining. Complete with electricity and AC, this space will be a hit!

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