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

4931 E Marino Drive Scottsdale, AZ 85254

$850,000
3 Beds
2 Baths
2,159 SqFt
Status Active
MLS # 6771285
Property Type Single Family Residence
Price Type --
Beautifully appointed 3 -bedroom plus office, 2- bathroom home , located in desired 85254 zip code. Master bathroom with soaking jet tub plus shower, granite countertops in the kitchen. Private pool with travertine deck, extended covered patio, built in outdoor kitchen. Open floorplan with vaulted ceiling. Come and see!

9965 E Supernova Drive Mesa, AZ 85212

$850,000
3 Beds
3.5 Baths
3,082 SqFt
Status Active
MLS # 6777842
Property Type Single Family Residence
Price Type --
Experience Eastmark in this beautifully upgraded home! Stunning curb-appeal welcomes you into a private courtyard. You will be WOW'd by the tastefully designed living room & kitchen created to capture a timeless style offering a feeling of luxury tied with functional space! High ceilings, rustic beams, and a large patio create the perfect space for entertaining or enjoying AZ evenings! The kitchen is a dream, offering granite counters, high-end cabinetry, crown molding, custom lighting, and GE Monogram appliances. The primary bedroom offers the perfect space. With a relaxing fireplace, & en-suite which can be used for anything you wish! Luxury does not stop there, enjoy the resort-style bath! All beds have private baths, 3-car garage, & low-maintenance landscape throughout!

1955 E Clubhouse Drive Phoenix, AZ 85048

$850,000
4 Beds
3 Baths
2,980 SqFt
Status Active Under Contract
MLS # 6718625
Property Type Single Family Residence
Price Type --
NEW PRICE to accomodate your personal touches and syle -GOLF COURSE LOT: Custom Built Single Level Home located on Foothills Golf Course Manged by Troon.. Eight Foot front door with glass side lites and large arched window welcome you to a dramatic foyer with formal dining and living room. Huge Family Room with open kitchen and Wet Bar for entertaining. Large kitchen has room for two cooks, , walkin pantry and tons of cabinets. Views Of The Pool, lush yard, Foothill Mountains and the Majestic Estrella Range. We sit high above the T-Box of the newly Troon managed Foothills Golf Course. This location offers quiet and serene nights on the covered patio with unending views.. The split floorplan features a huge primary suite with sitting area,large bath and Walk-In Closet. The Other Wing Has Three large bedrooms,two full bathrooms and laundry room with sink Wooden shutters throughout the home Three Car Garage and one is air conditioned. One AC unit is newer. This Home Is very well taken care of and has had only two owners. Backyard offers an Amazing Setting with a photo friendly backdrop. The Troon Golf Course offers incredible Golf with unmatchable views and wonderful dining. The Ahwatukee Area provides a unique lifestyle throughout the Community with award winning schools and miles of hiking and biking trails. Close proximity to Freeways and many restaurants leave this unmatched.

29202 N 146th Street Scottsdale, AZ 85262

$850,000
4 Beds
2 Baths
2,889 SqFt
Status Active Under Contract
MLS # 6528535
Property Type Single Family Residence
Price Type --
Beautiful 2889 square-foot, four bedroom, two bath horse property boasting 1+ acres located in the picturesque Rio Verde Foothills. High producing shared well!! Beautiful view of the four peaks from your backyard with a spa and pool. Two stall mare motel with spacious tack room and covered storage for hay and a 120 x 140 arena. Ride directly off your property for a trail ride into the Tonto National Forest or just under a 3 mile jaunt to Granite Mountain Trail head. Come escape the hustle and bustle and enjoy the quiet!!

914 N 6th Street Phoenix, AZ 85004

$850,000
2 Beds
3 Baths
2,081 SqFt
Status Active Under Contract
MLS # 6731855
Property Type Single Family Residence
Price Type --
**This Home has a story** A charming 1917 Craftsman Home in the Evans Churchill District just steps from the heart of Roosevelt Row, one of the last original residences in the area. Welcome to opportunity with Versatile City-zoning for mixed use - This property offers incredible flexibility whether you envision creating your Urban dream residence, a trendy restaurant, a retail business or other venture, the use permit offers great flexibility for an unparalleled opportunity in one of Phoenix's most sought-after neighborhoods. You'll be at the center of Phoenix's First Friday Art Walk creating a lively cultural experience. Surrounded by exciting new eclectic dining options, galleries and shopping, you'll never run out of places to explore. Plus, you're just a stone's throw away from ASU's downtown campus, easy freeway access, major sporting events, concerts, and endless dining options. Don't miss out on this rare opportunity to own a piece of Phoenix history in a location that has it all - uncover the endless possibilities this property has to offer!

5345 E Mclellan Road Unit 118 Mesa, AZ 85205

$850,000
3 Beds
3 Baths
2,702 SqFt
Status Active Under Contract
MLS # 6755884
Property Type Single Family Residence
Price Type --
Stunning Home for Sale in Gated Golf Course Community - Alta Mesa Estates Welcome to this exquisite home in the highly sought-after gated golf course community of Alta Mesa Estates. This luxury property boasts impeccable craftsmanship and high-end finishes throughout. As you step inside, you'll be greeted by an inviting foyer with graceful archways and a living room featuring elegant crown molding. Enjoy formal dining and a versatile den/office with a private courtyard, perfect for work or relaxation. The chef's kitchen is a true showstopper with custom cabinetry, crown molding, a glass tile backsplash, a large prep island with a breakfast bar, granite countertops, stainless steel appliances, and double ovens. A cozy breakfast nook with bay windows completes this beautiful space. Throughout the main living areas, you'll find wood-look porcelain tile flooring, adding both style and durability. Upstairs, a cozy loft offers a perfect spot for a reading nook, while the grand primary suite features balcony access, a walk-in closet, and a luxurious ensuite bathroom. The backyard oasis is ideal for entertaining, with a covered patio, multiple seating areas, and a saltwater pool with water features, creating a private resort-like atmosphere. Key Features: Located in NE Mesa with easy access to the 202 and US 60 Minutes from downtown Phoenix, Scottsdale, and Gilbert Close to Tonto National Forest (10-15 minute drive) Newer HVAC units and pool heater Fiberglass exterior windows and solid core exterior doors New ceramic tile in all three bathrooms Beadboard ceilings in the front entry and covered back porch Many more upgraded features throughout This home is perfect for entertaining, relaxing, and enjoying the Arizona lifestyle. Don't miss this exceptional opportunity!

28657 N 68th Drive Peoria, AZ 85383

$850,000
4 Beds
3 Baths
3,064 SqFt
Status Active Under Contract
MLS # 6756127
Property Type Single Family Residence
Price Type --
Welcome to your dream home nestled in a serene cul-de-sac! This semi-custom masterpiece boasts four spacious bedrooms plus a versatile den, perfect for a home office. With three beautifully appointed bathrooms, this residence offers both comfort and convenience. Step inside to discover an inviting open concept layout that seamlessly connects the dining room and living areas, making it ideal for entertaining! The chef's kitchen is a culinary delight, featuring modern appliances, ample counter space, and elegant finishes. As you venture outside you'll be greeted by a sparkling pool that promises endless summer fun, surrounded by lush landscaping and varieties of citrus, pomegranate and fig trees. Relax in beautifully designed courtyards. HUGE BONUS $45,000 Solar Owned for your buyers.

19422 N 67th Lane Glendale, AZ 85308

$850,000
5 Beds
3.5 Baths
3,988 SqFt
Status Active
MLS # 6738109
Property Type Single Family Residence
Price Type --
Stunning Arrowhead Ranch home w/ huge pool & lush landscaping! Nestled at the top of cul-de-sac, this impressive 3,988 sq ft home sits on over a 1/3 acre w/ 2x6 construction. Fresh white interior paint! It features five spacious bedrooms and 3.5 updated bathrooms. The primary bathroom shower has multiple body sprayers & free standing tub. The expansive game room offers surround sound, wet bar, a custom wormy oak ceiling, space for a pool table & views and access to the pool. The kitchen cabinets are Sapele wood & have sturdy pullouts in all lowers, granite countertops, Kitchenaid & Bosch appl. The beautifully refinished pebble tec diving pool has a new variable speed pump. Backyard has a small orchard w/ citrus & pomegranate trees, a cactus garden & plant covered gazebo! Low HOA fees The family room has a stone wood burning fireplace, new carpet and surround sound. Large windows with views of the pool and lush green yard. First floor has oak wood flooring in kitchen and traffic areas. All bedrooms are upstairs and there is a desk study area in the hall. The desk and cabinets are mahogany wood. There are 2 staircases in the home which if needed could divide the home into 2 living areas. There are 3 a/c units and 2 water heaters. This is a MUST SEE home to appreciate. All bathrooms have been fully updated. Laundry room is located upstairs with the bedrooms. Both stairways have custom wood railing and spindles. Garage has separate space for storage or for a dedicated workshop. The cactus garden includes valuable mature organ pipe cactus and a large saguaro along with a well-located cozy private seating area. In addition to very low traffic in the cul-de-sac itself, its smaller street front footage creates additional highly usable space in the back yard leaving a comfortable grass area and a brick patio off the dinning room. Swimming pool has a 10' deep diving well. The pool includes a large shallow shelf ideal for small children or for a space for adults to hang out. Pool also has a Bahia shelf and ample bench space. Pool is 46' long down the center, which allows its use to swim laps. The location is so convenient to the 101, Costco, fine and casual dining, Arrowhead Hospital and the New Phoenix Children's Hospital. Arrowhead is a golf community with Arrowhead Country Club just down the street. Residents can join for a fee, which includes tennis, pool & a gym. Original owners have kept this home beautiful! Note: Artwork in the primary bathroom does not convey.

15863 N 46th Place Phoenix, AZ 85032

$850,000 - 3Br/2Ba -  for Sale in Longmoor Estates, Phoenix
Open House
$850,000
3 Beds
2 Baths
2,014 SqFt
Status Active
MLS # 6783997
Property Type Single Family Residence
Price Type --

11832 E Clinton Street Scottsdale, AZ 85259

$850,000 - 3Br/3Ba -  for Sale in Stonehaven, Scottsdale
Open House
New
$850,000
3 Beds
2.5 Baths
2,421 SqFt
Status Active
MLS # 6784892
Property Type Single Family Residence
Price Type --
Come live in 85259, surrounded by multi million dollar homes and the best schools around! This 3 bedroom plus bonus room home has had many high ticket items replaced! New French door downstairs heading out to the tiled and covered patio to the newly resurfaced sparkling pool, new filtration and auto fill. Updated wood plank flooring on the first floor. New water heater, AC only 3 years old and the roof has been replaced too! Soaring ceilings, plenty of natural light, and cozy gas fireplace in the family room. The kitchen features refinished cabinets, a walk-in pantry and a gas stub for those who prefer to switch the cooktop to gas! Ideal bonus room/Den, and bathroom on the main floor. With views of the Mcdowell Mountains day or night, all bedrooms are located on the second floor. The large primary suite has vaulted ceilings, private balcony (door replaced), walk-in closet, double sink vanity, garden tub and separate shower. With close proximity to highly ranked Scottsdale and award winning BASIS schools, dining, shopping, hiking trails, Mayo Clinic and easy access to freeways, this will not last. Don't delay, come take a look today!

19702 W Elliot Road Buckeye, AZ 85326

$849,999
2 Beds
2 Baths
1,920 SqFt
Status Active
MLS # 6742176
Property Type Single Family Residence
Price Type --
This expansive 4-acre property offers the perfect blend of comfort, functionality, and freedom without the constraints of an HOA. Ideal for those with a passion for outdoor toys, RV(s), &/or horses. This property boasts a well-appointed 2-bedroom, 2-bathroom single-family home with 1920 sq. ft. of updated living space & 3-car garage, and a 40X80 workshop giving you ample space (3200 SQFT) for your toys and your latest projects. The highlight of this unique property is the rooftop balcony, where you can take in breathtaking 360-degree views of the surrounding mountains and cityscape. Equipped with both water and power, this elevated space is perfect for relaxation or entertaining under the stars. Prepare to be amazed by the open floor plan equipped with wood-look tile flooring throughout. Large family room offers a wet bar ideal for entertaining. Impeccable kitchen complete with recessed lighting, NEWER black SS appliances, plenty of crisp white cabinets, an island with a breakfast bar, and quartz counters. Make the flexible den a media room or additional lounging area. Main retreat boasts a walk-in closet and a private ensuite with a separate seating/office area. Enjoy views of the Estrella and White Tank Mountains throughout the kitchen and bedroom windows. This property is 1 of a kind. Don't miss it!

2634 N 141st Lane Goodyear, AZ 85395

$849,999
5 Beds
4.5 Baths
5,128 SqFt
Status Active
MLS # 6782102
Property Type Single Family Residence
Price Type --
Energy-efficient Palm Valley 5 bedroom 5 bathroom with finished basement and castia over 5000 SqFt with golf course views. This exquisite home offers attractive curb appeal w/stone accents on the façade, lush green landscape, private courtyard w/firepla ice. Impressive interior showcases crown molding, archways and plantation shutters throughout. The Chef's kitchen has six burner gas stove, staggered cabinets, tile backsplash, granite counters, island w/breakfast bar, SS appliances, double wall ovens, and breakfast nook. Spacious great room with a pre-wired surround sound, fireplace with double sliding glass doors to the backyard. The large master bedroom has an upgraded snail shower, huge walk-in closet and dual vanities. Property also features a finished basement that boasts two bedrooms full bathroom and its own living room. The spacious casita has it's own private entrance bathroom.

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