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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2299 E Saddlebrook Road Gilbert, AZ 85298

$899,999
4 Beds
5 Baths
3,400 SqFt
Status Active
MLS # 6773231
Property Type Single Family Residence
Price Type --
JUST AWARDED! The prestigious Gilbert Tour Of Homes, BEST HOME ON TOUR. Prepare to be amazed! Check out this gorgeous 4 bed, 3 full 2 half bath residence in the highly sought-after Adora Trails! Featuring a stunning facade w/stone accents, easy-care landscape w/artificial turf, 2 car garage, extended paver driveway, and an RV gate! Discover a spacious open floor plan bathed in natural light, perfect for entertaining. Elegant porcelain plank flooring, plantation shutters, crown molding, and trending palette throughout. The fabulous kitchen is equipped w/everything the aspiring chef needs, staggered cabinetry, granite counters, a walk-in pantry, tile backsplash, pendant lighting, stainless steel appliances such as dual wall ovens, and an island complete w/a breakfast bar. You'll also find a formal dining room ideal for a dinner party w/friends & loved ones. The grand primary suite boasts a walk-in closet and a lavish ensuite w/dual vanities & a garden tub. Don't forget about the large bonus room w/soft carpet! Lastly, the resort-like backyard includes a covered patio, extended seating area, a custom designed gas outdoor fireplace, and a putting green!

6858 E Orion Drive Scottsdale, AZ 85257

$899,999 - 3Br/3Ba -  for Sale in Skye On Mcdowell, Scottsdale
Open House
$899,999
3 Beds
3 Baths
2,251 SqFt
Status Active
MLS # 6732713
Property Type Single Family Residence
Price Type --
Super clean and ready to go!! Gated Scottsdale community with community pool, spa and workout facility. Upscale 3 bedroom/2.5 bath detached residence. PREMIUM LOT with extra common space from the east property. Highly upgraded with 10' ceilings, Tile backsplash, Trex and custom metal decor on patio, roof deck with utilities/views, plantation shutters, Bulldog security doors on front and back, tankless hot water system, custom kitchen cabinets to ceiling, Nest security cameras, custom built in closet shelving, fiber optic Cox cable, oversized 15' kitchen island, and oversized slider doors, built in loft shelving, direct access to street. Close to ASU, Sky Song, Old Town Scottsdale and freeway access. Use Aligned and LBX.

21911 E Via De Palmas -- Queen Creek, AZ 85142

$899,995 - 3Br/4Ba -  for Sale in Caleda By Toll Brothers, Queen Creek
Open House
$899,995
3 Beds
3.5 Baths
2,710 SqFt
Status Active
MLS # 6690626
Property Type Single Family Residence
Price Type --
This Beautiful Matthews Floorplan featuring 10' ceilings throughout, encompasses 3 ensuite bedrooms + large flex room and is currently under construction on a 10,500 SqFt. lot. Estimated completion is 9/24! This professionally designed home features a multi-gen suite with a separate entrance and kitchenette. The home is upgraded with a Chefs Kitchen boasting a large waterfall kitchen island, upgraded Wolf Appliances, beautiful cabinetry, and quartz countertops! Upgraded sliding glass doors at the dining room and great room allow for a seamless transition to the covered patio and views of the backyard, which backs up to a community green space for enhanced privacy. The primary bath is complete with a beach entry shower & dual sinks. New Toll Brothers Home with Warranties! Don't miss out!

1042 W Ridge Road Apache Junction, AZ 85120

$899,990
4 Beds
3.5 Baths
3,004 SqFt
Status Active
MLS # 6780576
Property Type Single Family Residence
Price Type --
4 BR 3.5 baths, extended patio, enclosed office, dining room cabs, and FAMILY FOYER ( a new option for us) 3-car garage. Kitchen cabs, 54 inches stacked, shaker style in white and morel with stainless steel appliances and ss chimney hood. Designer appointed mosaic backsplash to top of the hood. Dining room cabs in morel with floating shelves. 16 ft sgd in family room leading to expansive back patio area. Owners bath with super shower and rain can. All baths (except powder bath) with upgraded quartz tops and tile flooring. Wood looking plank style flooring throughout except bedrooms and closets. The family foyer adds space for a second fridge, 42-inch countertop, lower cabinets with a sink, and a walk-in closet for storage. 2X6 CONSTRUCTION; NEW HOME WARRANTY.

22842 E Via Las Brisas Valley Queen Creek, AZ 85142

$899,990
5 Beds
3.5 Baths
3,471 SqFt
Status Active
MLS # 6770364
Property Type Single Family Residence
Price Type --
You're going to want to see this newly built home in the highly sought-after community of Meridian! This single story 5 bedroom 3.5 bath home spans 3,470 square feet of a spacious floor plan situated on a premium north and south facing lot. With a perfect balance of luxury and functionality, this home is ideal for hosting. Experience the 10-foot ceilings grow to 12-foot ceilings in the great room. Gas range, double ovens, quartz countertops with a waterfall island, soft-close drawers, and an incredible amount of cabinet space make this a culinary wonderland! The wood-looking tile extends throughout the main living spaces and hallways of the home. You're going to want to see this newly built home in the highly sought-after community of Meridian! This single story 5 bedroom 3.5 bath home spans 3,470 square feet of a spacious floor plan situated on a premium north and south facing lot. With a perfect balance of luxury and functionality, this home is ideal for hosting. Experience the 10-foot ceilings grow to 12-foot ceilings in the great room. Gas range, double ovens, quartz countertops with a waterfall island, soft-close drawers, and an incredible amount of cabinet space make this a culinary wonderland! The wood-looking tile extends throughout the main living spaces and hallways of the home. Escape to the master bedroom that has a door leading to the backyard as well as an en-suite with his and her vanities, an elegant soaking tub, beautifully tiled walk-in shower, and vast walk-in closet. Secondary bedrooms are generously sized and comfortably equipped with carpet for a more homey feel. The 5th bedroom is tiled and perfect for an office space or guest room that comes with its own bathroom and an oversized walk-in closet. The backyard boasts a large covered patio and is plumbed for gas ready for your brand new outdoor kitchen. The lush landscape comes with a drip system, sprinkler system, fruit trees, and real grass! The best backyard bonus is that there are no neighbors behind! Let's not forget a 4 CAR GARAGE protected with a polyaspartic floor coating that's more durable than epoxy! This home is tucked back in the last street of the neighborhood, which makes for a peaceful retreat. The master community has a multitude of possibilities for outdoor enjoyment with family and/or pets. The neighborhood offers various parks, walking trails, a community pool, and a top-rated elementary school. Shopping and dining is just minutes away in the popular Town of Queen Creek and quick access to the SR24 is a straight shot up Signal Butte Road. This is truly a wise investment in a great community and prime location. Come and tour your dream home!

5265 E Karen Drive Scottsdale, AZ 85254

$899,990
4 Beds
2 Baths
2,068 SqFt
Status Active Under Contract
MLS # 6766727
Property Type Single Family Residence
Price Type --
This modern remodel is in a fantastic location in 85254! Step through the welcoming front courtyard into a light and bright space with wood-look tile floors flowing throughout. Kitchen includes stainless steel appliances, quartz countertops, breakfast bar and walk-in pantry. Tranquil Master suite with stand-alone soaking tub and separate glass shower. Relax or entertain in the resort style backyard with covered patio, saltwater pool, and built-in BBQ. Additional features included owned solar, stunning fireplace, easy to maintain landscaping, no HOA, and located just minutes from freeways, shopping, golf, restaurants, Mayo, and more!

32778 N 132nd Lane Peoria, AZ 85383

$899,990
3 Beds
3.5 Baths
2,840 SqFt
Status Active
MLS # 6663036
Property Type Single Family Residence
Price Type --
odern bright home with 3 large ensuite bedrooms, 3.5 baths plus a study and 4-car garage offers both beauty & energy-efficiency. Enjoy Saturday morning breakfast or Friday night entertaining in this beautiful gourmet kitchen complete with stainless GE appliances, a modern tile backsplash, an oversized island, classic white and gray shaker cabinets, accent lighting, an abundance of storage and huge walk-in pantry. With 10' flat ceilings, 8' doors & large, picturesque windows, this open plan is nothing short of perfection. Owner's retreat with spa-like bath featuring quartz tops, huge walk-in tiled super shower and oversized walk-in closet. Two tone paint, 8''x 32'' plank tile flooring and upgraded carpet throughout. Quality 2 x 6 construction & extensive new home warranty.

4633 N 127th Drive Litchfield Park, AZ 85340

$899,983 - 5Br/4Ba -  for Sale in Wigwam Creek South Parcels 3 & 4, Litchfield Park
Open House
$899,983
5 Beds
3.5 Baths
4,011 SqFt
Status Active
MLS # 6726517
Property Type Single Family Residence
Price Type --
This is an amazing opportunity to live the active luxury lifestyle in this fabulous home located within the GATED Vintage Subdivision of Wigwam South, Litchfield Park. This gorgeous, remodeled Fulton Bordeaux, 5 bedroom with office model is very special with over $170K in upgrades. Upon entering you will fall in love with the gorgeous tile flooring, open great room, gas fireplace & GOURMET CHEF'S KITCHEN featuring all-new, soft close custom wood cabinets/lighting, granite counter tops, stylish backsplash, an oversized granite middle island, 3 pantries and lots of storage throughout the home. With over 4,000 sq. ft. which includes a fully FINISHED BASEMENT, adding to the meticulously designed living space, there is lots of room for great comfort and extravagant living. FULLY PAID SOLAR

1165 E Gleneagle Drive Chandler, AZ 85249

$899,970
4 Beds
3 Baths
2,462 SqFt
Status Active
MLS # 6734134
Property Type Single Family Residence
Price Type --
New Home in Chandler! Great Floor Beautifully and Large Yard! Many Features are Upgraded with Woodlook Tile Floors Whole House, Gourmet Kitch, Quartz Countertops, Freestanding Tub and Large Shower with Bench, 10' Ceilings, 8' Door, Gated Master Planned Community of 100 Homes in Southwest Chandler. Dramatic tree lined Entry, with stone walls, oversized entry monuments, rustic gatehouse, and ranch style gates, opening up to a 3.2 acre Park. Large Homesites, and Extensively landscaped open space, will pay tribute to the Easy access to the San Tan Freeway, I-10, and Hwy 87, located amidst top rated Chandler Schools, shopping, large employers and dining! (*Photos shown are of a Model Home of this floorpan, built offsite). Taxes are estimat

26008 N 149th Drive Surprise, AZ 85387

$899,950
3 Beds
3.5 Baths
2,995 SqFt
Status Active Under Contract
MLS # 6770909
Property Type Single Family Residence
Price Type --
Beautiful! Brand new custom spec home on 1 acre lot. HUGE DOUBLE RV garage (21'6''x 46'') plus oversized 2 car garage (23'6''x26). Spectacular great room with 12ft ceilings. The gourmet kitchen boasts upgraded granite, high-end cabinets, upgraded GE Profile stainless appliances, large island & custom tile. Master suite includes an impressive walk-in shower, free-standing tub, dual sinks, huge closet & sep. exit. All baths include granite tops, custom tile work & surrounds. Open floor plan features a guest wing with an optional separate entrance. Energy efficient dual-zoned HVAC system & 400 amp electrical panel. Buyer still has time to select some finishes.

5141 S Newport Street Chandler, AZ 85249

$899,944
3 Beds
3 Baths
2,563 SqFt
Status Active
MLS # 6755786
Property Type Single Family Residence
Price Type --
Lovely new, single-story home located in the gated and private community of Treeland. Loaded with designer selections, this home features 3 bedrooms, 3 bathrooms, a den, a game room, and an attached 3 car garage. The Gourmet Kitchen boasts Stainless Steel built-in appliances with a 36'' gas cooktop and double ovens, and quartz countertops with a waterfall edge island. Other highlights include a 12' multi-slider at the Great Room, Bryant maple white cabinets, upgraded 8'' x 36'' tile plank flooring, and a frameless walk-in shower at the primary bath. The laundry room has cabinets over the washer and dryer and a laundry sink with cabinets. The exterior features a covered patio and pavers at the driveway and front porch.

W Hooper Trail Unit 2 Queen Creek, AZ 85144

$899,900
4 Beds
3 Baths
2,837 SqFt
Status Active
MLS # 6134536
Property Type Single Family Residence
Price Type --
CHECK OUT THE VIEWS!!! BREAKING GROUND SOON! Double bonus: Beautiful new home on a beautiful property backing up to the San Tan Mountain Regional Park! Our most popular floor plan 4 bed 3 bath (could be 3 +Den), Great Room, split Master. Standard features include granite throughout, stainless, tile surrounds, covered patio, 4-car garage, and more! NO HOA! Plenty of time for Buyer to make selections for flooring, cabinets, colors, etc. Estimated completion 9-10 months from ground-breaking. Photos are of a completed version of this plan.

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