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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17932 W Jojoba Road Goodyear, AZ 85338

$574,999
4 Beds
2.5 Baths
3,294 SqFt
Status Active
MLS # 6757606
Property Type Single Family Residence
Price Type --
This beautifully upgraded and spacious home located in the master planned lake community of Estrella is a must see! Located less than a mile from just one of the community's amazing clubhouses, with inclusive 2 story gym and impressive pools, you do not want to miss out on this opportunity that is priced incomparably! This home is truly in immaculate, like new condition and has been upgraded with no expenses spared. The 1st floor primary bedroom is a massive retreat with a spa like ensuite and huge walk-in closet! High end upgrades throughout the home such as new plush carpet, custom shelving/storage, fresh paint, new ss appliances, wood plank flooring are just a few to name and that doesn't even begin to describe what's been done to the huge backyard oasis! The artificial turf, garden and fruit trees, make you feel like you are living more in a resort than the desert...all the greenery and no mowing! What's the best part of owning this enormous home full of upgrades and turn key? The solar savings will make you feel like you can have all the space, without the high electric bills!

4501 E Grovers Avenue Phoenix, AZ 85032

$574,999
4 Beds
2 Baths
1,812 SqFt
Status Active Under Contract
MLS # 6723893
Property Type Single Family Residence
Price Type --
Huge price drop! Corner lot! NO HOA! This fantastic 4 bedroom, 2 bath home is located in a quiet North Phoenix neighborhood off Tatum & Bell. The home features vaulted ceilings and tile and engineered wood floors. The kitchen features espresso cabinets, granite counters, and a large island with a breakfast bar. It also features a gas stove and a stainless steel refrigerator. The master bath features a beautiful master shower with tile, glass door, and 3 showerheads, a vanity with dual sinks and granite countertop, and a walk-in closet. You will love the pebble tech pool, covered patio, and misting system. The garage is large with attached cabinets. The home has an easy to maintain desert landscape with a drip system. It has been freshly painted and is ready for you to move in

13640 W San Miguel Avenue Litchfield Park, AZ 85340

$574,999
4 Beds
2.5 Baths
2,408 SqFt
Status Active
MLS # 6781075
Property Type Single Family Residence
Price Type --
Welcome to this stunning 4 bedroom plus a den, 2.5 bath, heated pool and spa, owned solar, absolutely incredible home. Once inside you'll notice updated plank flooring throughout the main living areas, beautiful carpet in the bedrooms, a massive size kitchen with white cabinets and commercial size fridge, along with a butlers pantry. Step outside to your own oasis with a large covered patio, heated pool and spa, fire pit, and separate seating area. Newer AC units and paid off solar. This home is perfectly situated near the 303 and i10 freeway making it easy to access all the best restaurants, shopping, and hang out spots.

12003 W Parkway Lane Avondale, AZ 85323

$574,995
4 Beds
3 Baths
2,480 SqFt
Status Active
MLS # 6761530
Property Type Single Family Residence
Price Type --
The heart of this ranch-style home is an open floor plan with a family room, a breakfast nook and a large gourmet kitchen. The adjacent primary suite offers a walk-in closet and an attached bath. You'll also find two additional bedrooms and a bath, as well as a quiet study and complete with a living area, bedroom, and private bath. Includes covered patio and a 3-car-garage!

11950 W Parkway Lane Avondale, AZ 85323

$574,995
4 Beds
2 Baths
2,370 SqFt
Status Active
MLS # 6741755
Property Type Single Family Residence
Price Type --
Welcome to this exciting Raleigh home, ready for quick move-in! Included features: a covered entry; a gourmet kitchen offering 42' cabinets, quartz countertops, stainless-steel appliances, an island, and large butler's and walk-in pantries; an open dining nook; an impressive great room with center-meet patio doors; a beautiful primary suite showcasing a sizable walk-in closet and a private bath with double sinks; a spacious study; three secondary bedrooms with a shared bath; a central laundry and a cheerful covered patio. This home also boasts soaring 10' ceilings, wood laminate flooring, cultured marble bath countertops, extra windows and ceiling fan prewiring in select rooms, front yard landscaping and concrete pavers at the driveway and walkway.

11949 W Parkway Lane Avondale, AZ 85323

$574,995
4 Beds
3 Baths
2,570 SqFt
Status Active
MLS # 6761571
Property Type Single Family Residence
Price Type --
Explore this stunning Celeste home, ready for quick move-in on a homesite boasting driveway pavers and front yard landscaping. Included features: an inviting covered entry with a tray ceiling; a quiet study; a gourmet kitchen offering 42'' cabinets, quartz countertops, stainless-steel appliances, a double oven, a walk-in pantry and a center island; an open dining area; a spacious great room boasting center-meet doors leading onto a relaxing covered patio; a lavish primary suite showcasing a generous walk-in closet and a private bath with cultured marble countertops; a convenient laundry; a mudroom and a 2-car garage. This home also offers stone tile flooring, additional windows and ceiling fan prewiring in select rooms as well as airy 10' ceilings throughout.

668 E Aurora Drive San Tan Valley, AZ 85140

$574,990
4 Beds
3 Baths
2,144 SqFt
Status Active
MLS # 6768733
Property Type Single Family Residence
Price Type --
Move-in Nov. 2024!!! - Welcome to Edgewood, a charming community by K. Hovnanian Homes, conveniently located just south of AZ-24—perfect for both commuters and weekend adventurers. This beautiful Pasadena plan offers a spacious split floor design with 4 bedrooms, 3 bathrooms, and an additional office or flex room for extra versatility. The great room, with its vaulted ceilings and large sliding doors that open to the backyard, is ideal for entertaining. The home's interior is thoughtfully designed with our Loft-inspired ''Looks'' collection, featuring sleek grey cabinets, quartz countertops, elegant tile, and nickel hardware throughout. Don't miss the opportunity to own this newly completed home! Up to 6% of Loan Amount can be applied towards closing cost and/or short-long term interest rate buydowns when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

610 E Aurora Drive San Tan Valley, AZ 85140

$574,990
4 Beds
3 Baths
2,144 SqFt
Status Active
MLS # 6774531
Property Type Single Family Residence
Price Type --
Almost complete! CORNER LOT! This Pasadena split plan home includes 4 bedrooms, den and 3 baths. Designed with our beautifully curated Classic inspired interior selections. The open great room features a stunning vaulted ceiling and a multi-panel slider that opening to the large patio and backyard perfect for indoor/outdoor living. The kitchen features grey cabinets with satin nickel hardware, sparkling quartz counters and beautiful pendant lighting over the island. The den is ideal for working from home or a quiet retreat. The primary suite includes a generous walk-in closet and a resort like bath with free-standing soaking tub and large shower. This home is not to miss, plan your visit today!!! ^^Up to 6% of Loan Amount can be applied towards closing cost and/or short-long term interest rate buydowns when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

10215 W Piccadilly Road Avondale, AZ 85392

$574,990
5 Beds
3 Baths
2,456 SqFt
Status Active
MLS # 6728893
Property Type Single Family Residence
Price Type --
MLS#6728893 November Completion! Experience modern living at Parkside Los Cielos with our 40-3 floorplan—a two-story sanctuary boasting 5 bedrooms and 3 baths. The open design seamlessly connects the dining room, kitchen, and great room. For added privacy, a bedroom and bathroom are situated at the front of the home. The second floor features the primary bedroom, complete with a spacious walk-in closet, shower, and dual vanities, along with three additional bedrooms. Embrace a lifestyle of comfort and elegance in your new home.

18694 N 266th Avenue Buckeye, AZ 85396

$574,990
3 Beds
2.5 Baths
2,474 SqFt
Status Active
MLS # 6737822
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender. Ready for immediate move-in, this elegant home features 3 bedrooms and 2.5 baths, including a Jack & Jill bath. Enjoy the AV built-in, a den with double French doors, 8' interior doors, and 10' flat ceilings. The owner's bath offers a framed low-threshold walk-in shower with a seat. Additional highlights include a rear extension, 2+ car garage, gas stub & outlet package, a 36'' stainless gas cooktop, wall oven/microwave, chef luxury cabinet layout, and upgraded flooring, cabinets, countertops, and surrounds.

5881 N 193rd Drive Litchfield Park, AZ 85340

$574,990
5 Beds
4.5 Baths
3,189 SqFt
Status Active
MLS # 6745694
Property Type Single Family Residence
Price Type --
Welcome home to the Remerton floorplan. Featuring a full bedroom bathroom downstairs, two of the secondary bedrooms have private ensuite bathrooms. A formal foyer and hall is the perfect centerpiece for family photos or your art collection. The entrance hall then leads you to the expansive open concept kitchen and living space ideal for holiday gatherings. Whip up some mouthwatering recipes in the open kitchen featuring an impressive walk-in pantry and dedicated breakfast nook. Upstairs bedroom 2 features an ensuite bathroom, making this plan perfect for multi-generational families. An upstairs loft creates the ideal location for family game night! 3 car tandem garage and no homes behind you and stunning mountain views are the cherry on top! This home is ready for a 30-day close of escrow

12963 S 183rd Avenue Goodyear, AZ 85338

$574,990
3 Beds
2.5 Baths
1,900 SqFt
Status Active
MLS # 6763190
Property Type Single Family Residence
Price Type --
OWNED SOLAR ~ Golfer's Dream Home encompassing Post-Card like Panoramic Views; Imagine Resort Backyard ~ Extended Covered Patio, Pavers, 2 BBQ Grills with Seating. Relax ~ Stargazing from Hot tub & Cozy Firepit on 4th Fareway of Troon, Niklaus Design Premium Golf Course. Tray Ceiling in Entry welcomes you to Triple Slider ~Captivating Views of the Estrellas. Kitchen boasts Granite, Attractive Backsplash, Gas Cooktop, Double Ovens & New Lighting! Enjoy, Low Elec Bills, 3 Car, Cen Vac, Tankless HWH, RO, WS, Shutters & Blinds, Various New Lighting, Faucets & Fans! Estrella ~50+miles Hiking, Biking trails, 35+ Parks, Waterpark, Splashpads, Heated Pool, 2 lakes: Boating, Fishing, Tennis, Pickleball, BB, Volley. Award Winning Goodyear: Rec Campus & Civic Square, Amazon, Boeing, Microsoft Estrella has amazing HOA amenities included in your low HOA dues! 50+ Miles of Hiking & biking trails, 35+ parks, waterpark, heated pools, Lap Pool, 2 Lakes, Yacht Club with free resident boating, fishing, Troon, Niklaus golf course, tennis, pickleball, basketball, volleyball, horseshoe pit, covered BBQ ramadas and pavilion, playground equipment, splashpad, BMX park, sporting fields, just to name a few of the Incredible Amenities. Starpointe Residents' Club offers incredible, gourmet lakeside dining at Lakeside Grill Estrella, as well as: weekend brunch, happy hour on the patio, gazing at unsurpassed sunsets. Starpointe is second to none: complete with a waterpark, heated lap pool, cafe, library, fitness center, youth club, meeting rooms for rent.Enjoy a family Wedding or Reunion at Starpointe's event rooms or lawn gazing to the spectacular fountains and the glistening lake. HOA features community events at both Clubhouses! Also included in your dues, Presidio Residents Club featuring a year-round heated pool with splash pad, outdoor showers, mountain views, beautiful social space, sports/ recreation game room with pool table and multiple TVs, great room with fireplace, demonstration kitchen, event lawn, fire pits to relax by, 3400sf, state of the art fitness center, community game/entertainment room perfect for sporting and family gatherings located in Presidio Club. The Cantina, Mexican Restaurant has incredible Mexican food, all fresh braised meats with homemade salsa, sauces, dressings made in house. Cantina includes TV's to watch sporting games, a beautiful patio with amazing views and also hosts free music entertainment! Join in on organized activities via the HOA, some included at no cost, others a minimal fee. Two picturesque lakes, and beautiful backyard displaying one amazing sunrise and sunset after another, are just a few of the reasons to choose this magnificent home. You name it! Estrella is known to be the best value out there when comparing HOA amenities and costs! It's the ideal place for young professionals, singles, active families, and retirees with convenient access to Route 303, I10 and 101. Estrella located in Award Winning Goodyear, named number seven Best US Cities to Live by 24/7 Wall Street. Goodyear was the recipient of prestigious national awards in 2008: All American City Award and the National Civic League and City Livability award from the US Conference of Mayors. Goodyear's focus is on Commerce, Livability, Healthcare and Education. Goodyear was also named #22 in the best 100 cities to reside. New Goodyear Civic Square, showcasing wonderful New Georgia Lord Library, City Offices, City Square for outdoor events, music, plays, etc! There is room to Grow for Goodyear to add around the Civic Square more Restaurants and Retail. Goodyear Recreation Campus Now Open! Multiple Sporting Parks including popular Pickleball, Fitness, BB Court, Tech Room, Water Park, Swimming Lessons! Community Events, Classes, & Celebrations. Goodyear's Largest Christmas Tree Displayed! In addition, many companies that have made Goodyear their home: Amazon, Microsoft, Boeing, Ball Corporation, Aldi, Macy's, Wolf - Subzero, Huhtamaki, REI, Dicks Sporting Goods, Ferrero Rocher, Anderson Windows, Fed EX, UPS, Hobby Lobby, Data Tech Centers! Goodyear has a commitment to bringing industry into the area for local job growth. Sports fans flock into Goodyear watching games at Goodyear Ballpark, home of Spring Training for Cleveland Guardians and Cincinnati Reds. The Goodyear ball field also partners with the community for incredible festivals, as well as for graduation and city events. Many travel from all over the US and other countries to be cared for at the Cancer Treatment Center of America (now City of Hope) located its Western Regional Medical Center within the city's Medical Innovation Corridor of Goodyear! Goodyear is education focused and now the home of Franklin Pierce University and Columbia University. Make Goodyear and this Stupendous home your new full-time home or perfect winter retreat!

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