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

7180 E Kierland Boulevard Unit 1218 Scottsdale, AZ 85254

$2,999,990
2 Beds
2.5 Baths
1,838 SqFt
Status Active
MLS # 6765853
Property Type Apartment
Price Type --
Discover the height of luxury living in this breathtaking contemporary penthouse 2-bedrooms, 2.5 baths with floor to ceiling windows throughout with open concept living room and dining room area for entertaining and be blown away by the stunning city views of Kierland, Paradise Valley, and Camelback Mtns. Entertain with a view in the contemporary gourmet kitchen. Designed to impress guests with a large island, custom cabinetry, gas stove, Bosh appliances, and wine fridge which leads into an elegant dining room with stunning views of the city and mountains. The spacious primary bedroom suite with breathtaking sunset views Unit includes 2 reserved underground parking spaces. Enjoy the buildings state of the art design and amenities, which include; a resort style rooftop pool, large sitting area with firepits, saunas, steam rooms, several BBQs, full size kitchen, party room, full size gym, yoga room, full racket court, game room, full size basketball court, pickleball court, golf simulator, business office, and dog park. Enjoy the convenience of being minutes away from the retail shopping at Scottsdale Quarter and Kierland

10460 E Quartz Rock Road Scottsdale, AZ 85255

$2,999,900
4 Beds
4.5 Baths
5,112 SqFt
Status Active
MLS # 6755408
Property Type Single Family Residence
Price Type --
This beautiful recently updated home is located in gated Troon Fairways which is adjacent to private country club or Troon featuring a Tom Weiskopf championship golf course. The home features spectacular view of Pinnacle Peak, Troon & McDowell Mountains as well as city lights. The 5,112,sf, 4 bedroom en-suite home is all on one level except for a lower level home theater and wine storage. Nearly every room has been updated with the finest finishes and features including updated baths, white oak wood and Travertine floors, new stainless-steel appliances, two dishwashers, center island kitchen, walk-in pantry, Lutron lighting, new pool equipment, home water filtration system, view deck, new roof, new low-e windows, new HVAC, epoxy coated oversized 3 car garage and much more.

7150 E Sierra Vista Road Cave Creek, AZ 85331

$2,999,500
4 Beds
4.5 Baths
3,490 SqFt
Status Active
MLS # 6737874
Property Type Single Family Residence
Price Type --
Almost 50 acres on one of the highest view parcels North of Cave Creek. Pristine high desert vegetation and incredible 360 degree views from the mountaintop. Rare opportunity and stellar home will be sure to woo you with the peacefulness, privacy, and setting. Vacant land parcel is 38.5 acres plus the home is on 9.9 acres. This home is priced right and ready to sell. Nothing in the area compares and homes rarely come on the market in this area. Remodeled in 2017 w/high-end modern finishes while preserving the integrity of the original homestead built in 1975. Massive great room/dining room overlooking view/pool with extensive patios. The 676 sqft casita has 1 bdrm & bath, kitchenette & great room w/deck. Don't miss an opportunity to own this one of a kind property!

10 Ranch House Circle Sedona, AZ 86336

$2,999,000
5 Beds
5 Baths
5,580 SqFt
Status Active
MLS # 6756415
Property Type Single Family Residence
Price Type --
Welcome to Doodlebug Ranch, the First of Three Historic Properties Homesteaded in Sedona & Featured on TV! No HOA and STR Friendly, this is truly a one of a kind spectacular setting on 1.25 acres & stroll to Oak Creek! Relive history in this Rustic Rambling Ranch Home and a Cowboy Bunkhouse built in 1936 with river rock harvested from Oak Creek and Wood Beams brought in on Horseback from Oregon! The Massive Covered Front Porch beckons you to cool off and rejuvenate in the oversized Adirondack Chairs listening to the melodies of the creek and wind blowing through the massive oak and sycamore trees. Step back in time and marvel at the craftsmanship of the rock walls, multiple fireplaces and varied rich textures of wood and stone. Sellers Modernized the Lodge 2022. Main house sleeps 10 & features two Primary Bedrooms. Main Level Primary is spacious and secluded at one end of the home. Upper level Primary features a HUGE walk-in closet, Clawfoot Tub, Balcony, Skylight over the Bed for Stargazing as you fall into a peaceful slumber. Play some darts during Happy Hour in The Bourbon Lounge. Magical memories gatherings happen in the Open Kitchen Dining Combo with two-story high ceilings which seats twelve comfortably on the natural flagstone floor. Chef's kitchen boasts butcher block Island to prep your favorite culinary delights and finish them off on the Forno 5-burner gas cooktop. Be blown away by the design of the Massive River Rock Fireplace and the intricate floor to ceiling tree trunk support beams. Just steps away is Cowboy Bunkhouse which sleeps four and features two separate cozy and comfy dwellings. Guests will experience the simplicity, privacy and tranquility that generations before have enjoyed. Other than a few modern additions, this cabin-like treasure is the real deal! When it's time to celebrate life, congregate with guests in the massive lush green backyard and let the fun begin. While the chef is preparing the BBQ feast, take a stroll over to the creek or around the grounds to admire the metal sculptures and gardens, play croquet, backgammon, hide 'n seek, or take a snooze in the shade under one of many towering trees. Be sure to look for the first boulder excavated from Chapel Of The Holy Cross site, which can be admired and awed forever in the backyard. At night, relax and rejuvenate in the hot tub while gazing into the dark celestial skies of Sedona. This amazing property also has a three-car garage with laundry/utility station. As if this lifestyle couldn't get any better, membership is available next door at Poco Diablo Resort where you and your guests can enjoy the resort amenities. Or visit their restaurant as an additional dining option. Be sure to order one of their famous Bee Sting Cocktails at the bar! This may be a once in a lifetime opportunity to own a historical property in beautiful Sedona. Coconino Parcel 40144047 included in sale. Won't last long so make it yours today!

14225 N River Ridge Road Coolidge, AZ 85128

$2,999,000
5 Beds
6 Baths
7,312 SqFt
Status Active
MLS # 6765271
Property Type Single Family Residence
Price Type --
Stunning one of a kind custom home featuring quiet living and space! This 7200 square foot home sits on 12 secluded acres of beautiful desert landscaping with views of the Superstition Mountains. Immediately fall in love as you enter the large arched door that opens to a gorgeous open floor plan highlighted with sprawling ceilings, copper fireplace, and the largest kitchen island you've ever seen! Features include large sparkling pool, travertine floors, beautiful balcony, basement, screened in back porch, guest quarters with kitchenette, butlers pantry, 2 laundry rooms, 2 soaking tubs, celestial windows, real wood floors, custom real wood doors, tons of storage, air conditioned garage with 3-16ft doors, two wells, and a guest home! And so much more!

15 E Country Club Drive Phoenix, AZ 85014

$2,999,000
5 Beds
5 Baths
5,154 SqFt
Status Active
MLS # 6781198
Property Type Single Family Residence
Price Type --
If you're looking for the convenience of the Phoenix Country Club look no further. For the first time in 30 years the Lane Estate is on the market! This classic ranch has a red tile roof and welcoming courtyard. The lush landscaping draws you into the comfort of this 5 bedroom, 5 bath home. The additional features include a formal living room, 2 family rooms, office, fully tiled pool, 3 fireplaces and a 5 car garage! Just across the private street is the golf shop, pool, tennis courts and locker rooms. It doesn't get better than this! Come see for yourself and imagine living across the street from the Phoenix Country Club! Luxury and convenience are steps away!

4414 N 29th Street Phoenix, AZ 85016

$2,999,000
4 Beds
4.5 Baths
4,597 SqFt
Status Active
MLS # 6785885
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the sought-after Biltmore neighborhood of Phoenix, AZ. Estimated to be completed in January of 2025, this contemporary property redefines modern living with its striking design, unparalleled features, and luxurious amenities. Situated on an expansive 13,000 square foot lot, this residence offers an impressive 4,600 square feet of meticulously crafted living space. From the moment you step inside, you'll be captivated by the seamless blend of sophistication and functionality. This home has a unique feature like no other: a certified bomb shelter. This versatile space presents endless possibilities, from a high-end wine cellar to a state-of-the-art card or multimedia room, offering a touch of exclusivity that will surely impress. With 4 spacious bedrooms and 4.5 opulent bathrooms, the property provides ample room for relaxation and entertaining. The modern design is enhanced by Sub-Zero/Wolf appliances, high-end light fixtures and faucets, reflecting a commitment to quality and luxury. The open-concept layout ensures a fluid transition between living spaces, while large windows invite abundant natural light, highlighting the home's sleek lines and contemporary finishes. Located just moments from the best shopping and dining Phoenix has to offer, this home not only offers an exceptional living experience but also places you at the heart of a vibrant community. Don't miss the chance to own this extraordinary property that blends modern elegance with unique features. Reach out today and discover the endless possibilities of this stunning Biltmore residence.

8599 E Sand Flower Drive Scottsdale, AZ 85266

$2,999,000
4 Beds
4.5 Baths
5,070 SqFt
Status Active
MLS # 6784552
Property Type Single Family Residence
Price Type --
From the moment you arrive at this stunning North Scottsdale estate, the inviting front courtyard sets the tone, featuring a serene fountain and a cozy gas fireplace. The grand entrance leads you into an elegant formal living room and dining room, both designed to capture breathtaking views through picture windows that showcase the expansive backyard and iconic Pinnacle Peak. Flowing from these spaces, with zero steps throughout the home, a beautifully appointed chef's kitchen with a top-of-the-line Thermidor gas stove, dual built-in ovens, built in refrigerator, freezer, a spacious walk-in pantry, and elegant granite countertops. Expansive kitchen counters, running the length of the room, include convenient refrigerator drawers near the kitchen dining and back entrance perfect for grabbing a drink on your way out The spacious primary suite is a true retreat, featuring two large walk-in closets and an incredible spa-like bathroom with a large walk-in shower. The home also offers three additional ensuite bedrooms, ensuring comfort and privacy for guests, along with a dedicated office perfect for remote work. Step outside to your spectacular backyard oasis, complete with a built-in BBQ, a cozy fire pit, and a heated swimming pool. Surrounded by mountain views and breathtaking Arizona sunsets, this outdoor space invites you to relax, entertain, and enjoy the beauty of North Scottsdale. Perfectly located near the upscale shopping and dining of Kierland and Scottsdale Quarter, and close to the vibrant communities of Cave Creek and Carefree, this home offers unmatched luxury and convenience. Schedule your private showing today to experience this extraordinary home for yourself. Some of the home's features Whole house water filtration Sonos Security cameras and system Gas Pool Heater Putting or Bocce in backyard

8535 E Regina Circle Mesa, AZ 85207

$2,999,000
5 Beds
5 Baths
6,025 SqFt
Status Active Under Contract
MLS # 6722214
Property Type Single Family Residence
Price Type --
Hillside mountain masterpiece home that is beautifully situated on a cul-de-sac lot featuring 5 bedrooms and 5 bathrooms. This amazing layout has two master suites. The Gorgeous remodeled gourmet kitchen features a walk in pantry, built in appliances including a 48 inch gas cook top, dual wall ovens, built in ice maker and so much more. Enjoy the media room, office and huge family room with wall of glass to the back yard. You will love the Soaring 20+ foot ceilings, plus the beautiful stone and brick accents throughout. This open floor plan has new large format porcelain floors, all new base boards plus all new bathrooms. This home has a fabulous layout for entertaining! The backyard features a mosaic tile pool and spa, plus a huge outdoor kitchen with built in bar and BBQ. Enjoy sunsets and the putting green plus fabulous mountain views. front courtyard offers amazing sunsets and city light views plus a beautiful fireplace and don't forget the loft offering beautiful views of the valleys. so much to see and enjoy and plus this home is MOVE In READY!

6924 E Stagecoach Pass Carefree, AZ 85377

$2,999,000 - 3Br/4Ba -  for Sale in Carefree Plat 3b, Carefree
Open House
$2,999,000
3 Beds
3.5 Baths
4,400 SqFt
Status Active
MLS # 6755398
Property Type Single Family Residence
Price Type --
On the southeast side of Carefree's Black Mountain. This hillside landmark residence was designed by the legendary Carefree architect Gerry Jones. One of a kind desert contemporary home with stunning views of the Boulder pile, Pinnacle Peak, McDowell Mountains, and city lights. Only a block from the Boulders resort. Private gate. No HOAs. Nestled in the boulder outcroppings. You will find the pool and outdoor spaces in the most private setting with amazing mountain and city lights views. The home has been designed with such harmony w/ nature and seamlessly blending the living space to the outdoors. Lots of recent upgrades & improvements. You will be impressed and captivated. Rare opportunity to own an iconic residence. Perfect private vacation golf getaway or year-round residence

4849 N Camelback Ridge Road Scottsdale, AZ 85251

$2,995,000
2 Beds
2.5 Baths
2,157 SqFt
Status Active
MLS # 6636465
Property Type Apartment
Price Type --
Tucked at the base of revered Camelback Mountain, Ascent is a new, private residential enclave adjacent to The Phoenician Resort - one of Arizona's premier luxury resort destination. This community incorporates the Sonoran Desert landscape directly into its design, at the most enviable location in Scottsdale. Ascent offer views overlooking the Valley & Camelback Mountain. Home designs feature contemporary architecture integrating warm, natural materials, expansive windows, and large outdoor patios. Thoughtfully designed by Nelsen Architects and Vallone Interior Design. Luxury finishes include exquisite Bulthaup Kitchens, Provenza wood floors, Sub Zero Wolf appliances & 10' ceilings.

4407 N 37th Way Phoenix, AZ 85018

$2,995,000
5 Beds
5.5 Baths
4,192 SqFt
Status Active
MLS # 6774889
Property Type Single Family Residence
Price Type --
Welcome to your dream home in one of Arcadia's most desirable gated neighborhoods. This timeless residence masterfully blends classic elegance with modern design, featuring numerous custom upgrades throughout. This expansive 5-bedroom, 5.5-bathroom home includes a luxurious first-floor primary suite, each bedroom boasting its own en- suite bathroom for ultimate comfort and privacy. The loft area provides additional space for relaxation or entertainment. Step inside to discover custom millwork, an elegant iron staircase, and striking iron beams that enhance the home's architectural beauty. Soaring ceilings create an airy ambiance, complemented by high-end custom hardware, fixtures, and window treatments. The garage features a 220-volt outlet, perfect for EV charging. Nestled on a completely private cul-de-sac lot with north-south exposure, this home offers abundant natural light and breathtaking mountain views. The two distinct backyards are designed for relaxation and entertainment, complete with a sparkling pool, cozy fireplace, two custom-built pergolas, a misting system, built-in BBQ, and lush artificial turf. The chef's kitchen is a culinary dream, equipped with top-of-the-line Subzero and Wolf appliances, a spacious eat-in area, and a large islandideal for gatherings and family meals. Located just a short walk from popular spots like La Grande Orange, Postino, Ingo's, and Chelsea's Kitchen, this home offers not just luxury but also a vibrant lifestyle. Don't miss your chance to own this exquisite property in the heart of Arcadia!

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