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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22803 N Via Ventosa Drive Scottsdale, AZ 85255

$8,375,000
5 Beds
7 Baths
6,800 SqFt
Status Active
MLS # 6681467
Property Type Single Family Residence
Price Type --
CP Drewett of Drewett Works Architecture inside Canyon Heights. North Scottsdale's most prestigious gated, hillside, view community; sides to Silverleaf without Silverleaf architectural guidelines and density. This is the last available hillside lot within the enclave. With nearly 10 acres of panoramic sunset and city light views, this elevated lot offers a rare opportunity to build your dream home. The entrance to the parcel is flat, providing acreage for endless options. A gradual slope ensues, rendering incredible Westward facing views. Sweeping views of Lost Canyon to the South. An elevated view lot of this caliber is a rare find and deserves a first in class Builder behind it; we welcome you to set up a walkthrough with Jeff at True North Builders or CP at Drewett Works.

29211 N 53rd Street Cave Creek, AZ 85331

$8,250,000
6 Beds
5 Baths
8,700 SqFt
Status Active
MLS # 6609693
Property Type Single Family Residence
Price Type --
INCOME PRODUCING PROPERTY! Equestrian Estate has 25+ acres, city water, paved roads, & one of the most desirable locations for horse Training, Boarding or Breeding Facility in the Valley. This Equestrian Estate offers three well-appointed homes, perfect for multi-generational living or rental income potential. The main home, a luxurious retreat, features a sparkling pool, outdoor living space, creating an oasis of relaxation & entertainment. The property also boasts 4 spacious barns, mare motel, 2 covered arenas, outdoor arena & bridle path. Additional equestrian amenities include a round pen, multiple turnouts, hay barn, tractor storage, mister system, multiple tack rooms, ensuring top-notch facilities for your horses. There are 2 manufactured homes, the possibilities are endless.

20908 W Durango Street Buckeye, AZ 85326

$8,000,000
8 Beds
8 Baths
5,512 SqFt
Status Active
MLS # 6688287
Property Type Single Family Residence
Price Type --
One of a kind commercial vet clinic/breeding facility including two residential homes and 30 acres of prime land in one of the fastest growing cities in the country. The subject property presents an exceptional opportunity for multiple uses. Its location creates an optimal environment for multi family, commercial and many other uses just minutes from ''The Landing'' near I-10 and Verrado Way. This area is primed to be the West Valley's newest entertainment, employment and residential hub of Buckeye. Don't miss this golden opportunity to become one of Buckeye's prime destination spots. Two beautiful 4 bedroom 3 bath slump block identical homes, huge barn with apartment, detached garage, multiple pastures, flood irrigation and 60 covered stalls with turnouts. Opportunity of a life time!!!

33094 N Northstar Circle Scottsdale, AZ 85266

$8,000,000
5 Beds
6.5 Baths
7,460 SqFt
Status Active
MLS # 6773912
Property Type Single Family Residence
Price Type --
Presenting a stunning new build in Whisper Rock Estates with approved plans , this high-quality contemporary residence boasts 7,460 sqft of luxurious single-story living. A thoughtfully designed floor plan includes 4 bedrooms, a dedicated exercise room, & a versatile flex room, centered around an expansive kitchen & great room. The attached casita adds an extra layer of comfort & privacy. Floor-to-ceiling windows frame breathtaking views of the resort-style backyard, complete with a pool, spa, & water features. The surrounding natural beauty of the Sonoran Desert, Winfield Mountain, & distant Chiricahua Mountain vistas create a serene backdrop. Perfect for entertaining, the home features a wet bar with retractable glass walls, a spacious covered patio with a fireplace, & an outdoor more kitchen with a built-in BBQ, blending indoor and outdoor living effortlessly.The primary suite is a private retreat, featuring a tranquil, spa-like bathroom with custom Copenhagen cabinetry, limestone countertops, a marble shower, dual water closets, and a freestanding soaking tub. Guests can enjoy their own 903 sq ft 1-bedroom guest house, complete with a kitchen and living room, offering ultimate privacy and comfort. Premium finishes are showcased throughout, including a Wolf and SubZero appliance package. The 5-car garage and ample parking provide the perfect space for a luxury car collection. This home exemplifies contemporary elegance, surrounded by the beauty of the desert landscape. This property is ready to break ground with builder.

7646 E Hidden Canyon Street Mesa, AZ 85207

$7,999,950
5 Beds
7 Baths
9,000 SqFt
Status Active
MLS # 6760394
Property Type Single Family Residence
Price Type --
Exceptional Modernterranean Estate at framing stage by Micela Builders. Like no other, the pad offers unparalleled privacy within the exclusive gated community of Hidden Canyon at Las Sendas. Backing onto the Tonto Forest, this single-level home features walls of glass for seamless indoor-outdoor living experience and boasts exquisite marble accents, a two-way fireplace, and en suite bedrooms. The resort-style backyard offers a negative-edge pool, spa, and rooftop deck with stunning mountain views. Its 1,600 sf air-conditioned garage accommodates 6-8 car parking. The home embodies meticulous craftsmanship and architectural brilliance.

6619 E Stallion Road Paradise Valley, AZ 85253

$7,995,000
4 Beds
8.5 Baths
8,000 SqFt
Status Active
MLS # 6656548
Property Type Single Family Residence
Price Type --
Amazing luxury estate blended in at the base of Mummy Mountain and a rare find in the heart of Paradise Valley. Imported materials include reclaimed cobblestone from Rome, Italian marble, handcrafted furniture style cabinetry and masterful craftsmanship throughout home. Expansive covered patio, barbecue kitchen area, synthetic grass, pool, spa and fireplace. Mature landscaping accents the Santa Barbara-Tuscan Architecture. Split floor plan with 4 en-suites, office including a fireplace. Master suite has separate water closets; one with a bidet. A soaking/jetted tub in the center of the bathroom and large pass-through shower with dual rainforest shower heads. Stunning home is a must see.Bring us an offer. Thank you.

6737 E Exeter Boulevard Scottsdale, AZ 85251

$7,995,000
5 Beds
7 Baths
6,876 SqFt
Status Active
MLS # 6650382
Property Type Single Family Residence
Price Type --
This brand new custom home is a true showstopper. The amazing team at Caniglia Development has created an absolute masterpiece combining classic elegance with a modern vibe. The exceptional design, architectural excellence and superior construction will impress anyone with an eye for quality and style. The kitchen will be gorgeous with top-of-the-line appliances, oversized prep spaces and custom cabinetry, the great room will be exquisite with soaring ceilings and a chic fireplace, the office will make working from home the preference, the game room will be a perfect spot for kids and adults alike, and all the bedrooms and baths have their own unique elements including a breathtaking owner's suite with a spectacular bathroom. The grounds will be every bit as impressive as the home with

4743 N 54th Street Phoenix, AZ 85018

$7,995,000
5 Beds
6 Baths
7,828 SqFt
Status Active
MLS # 6762489
Property Type Single Family Residence
Price Type --
Discover your own paradise on the south side of Camelback Mountain. This Spanish-style gem boasts captivating design, cityscape vistas, and architectural elegance. Be enchanted by the warmth and spaciousness of this home. High ceilings and abundant natural light welcome you into an open layout. With its gourmet kitchen, wine cellar, and wet bar, this home is a perfect setting for entertainers. Each bedroom provides an en-suite bathroom. The owner's suite, a wing of its own, features a spacious closet, a marble-filled bathroom, a private office, and a balcony with stunning views. Step outside to your private oasis, complete with a pristine pool, an outdoor kitchen, and ample relaxation space. A guest house accommodates visitors or extended family.

11269 N 98th Place Scottsdale, AZ 85260

$7,995,000
7 Beds
9 Baths
7,661 SqFt
Status Active Under Contract
MLS # 6686291
Property Type Single Family Residence
Price Type --
Welcome to a masterpiece of contemporary design and rustic charm nestled in a quiet cul-de-sac of Cactus Acres. This exceptional luxury modern farmhouse on 1.16 acres offers a harmonious blend of sophistication, comfort, and natural beauty, promising a lifestyle of unparalleled elegance and tranquility. Designed by Architect, Domenic Berta, this recently completed home is sure to speak volumes. The main house of 5,922 livable square feet holds 5 bedrooms, 5 full and 1 half bathroom. Across from the pool, the guest house of 1,739 livable square feet contains a full kitchen, living room with fireplace, 2 bedrooms, 2 full and 1 half bathrooms, and laundry room. Upon arrival, you are greeted by the allure of the desert landscape and majestic mountain views. A limestone and stucco façade make for an inviting approach. Set against the backdrop of the beautiful McDowell Mountains, this architectural gem captivates with its clean lines, expansive windows, and inviting outdoor spaces. Once inside, you will find a meticulously crafted interior by Dana Reynolds Interior Spaces that seamlessly blends modern sophistication with traditional charm. The open-concept floor plan flows seamlessly from the grand foyer to the spacious living areas, where vaulted ceilings complimented by dark wood beams and large windows bathe the space in natural light. The gourmet kitchen is a chef's dream, featuring Wolf appliances, sleek quartz countertops, and custom cabinetry that effortlessly blend modern convenience with farmhouse charm. Entertain guests in style in the elegant dining area or gather around the cozy fireplace in the adjacent living room for intimate gatherings and lively conversations. Retreat to the lavish master suite, where luxury abounds with a spa-like ensuite bathroom, steam shower, walk-in closets, fireplace and sliding doors to the patio offering views of the surrounding desert landscape. Additional bedrooms, guest house, and versatile living spaces provide ample room for guests, while a dedicated home office offers a serene environment for remote work or creative pursuits. Outside, the grounds invite you with endless opportunities for relaxation and recreation day and night. Lounge by the sparkling pool and spa, take in the peaceful sounds of the pool waterfalls, enjoy a drink at the swim-up pool bar, dine al fresco under the covered patios, refine your golf skills, or gather near the fire pit on cool desert evenings, soaking in the beauty of the starlit sky. Don't be afraid to walk barefoot all summer long because these limestone pavers never get hot. Plenty of room for an RV garage! Conveniently located just minutes from Scottsdale's world-class dining, shopping, and entertainment options, this modern farmhouse oasis offers the perfect balance of privacy and proximity to city amenities. Explore nearby hiking trails, golf courses, and cultural attractions, or simply unwind in the serenity of your own private desert retreat. Experience the epitome of luxury desert living in this exceptional modern farmhouse, where every detail has been carefully curated to elevate your lifestyle and exceed your expectations. Welcome home to your ultimate Scottsdale sanctuary.

7044 E Cheney Drive Paradise Valley, AZ 85253

$7,994,900
5 Beds
5.5 Baths
6,564 SqFt
Status Active
MLS # 6422918
Property Type Single Family Residence
Price Type --
Spectacular Contemporary new home by Sonora West Development near its August 2024 completion. Total 6,564/s with a 5,595/sf main house and 969/sf guest house. The home includes 5.5 en-suite bedrooms including a large 2 room guest house which doubles as a pool house large enough for a pool table and seating. High-end appliances include Sub-Zero and Wolf. The circular paved driveway leads to spectacular water featured courtyard entry. Large covered patio and spectacular backyard with a Ramada, BBQ, fire pit, pool and spa. 4 car garage with gated entrance. No HOA.

6440 E Stallion Road Paradise Valley, AZ 85253

$7,890,000
7 Beds
8.5 Baths
9,472 SqFt
Status Active
MLS # 6766106
Property Type Single Family Residence
Price Type --
Welcome to your dream oasis in the heart of Paradise Valley. This exquisite custom home on an ultra private cul-de-sac combines sophisticated design with unparalleled comfort, boasting almost 10,000 square feet of opulent living space. Featuring a total of 7 spacious bedrooms, 8.5 bathrooms, and 5 car epoxy garage, each room is meticulously designed with high-end finishes and attention to detail. The grand entryway greets you with a stunning flowing floor plan, perfect for entertaining. Enjoy gourmet cooking in the state-of-the-art kitchen, complete with top-of-the-line appliances, a large illuminated island, and custom cabinetry. The expansive living and dining areas are accentuated by soaring ceilings and panoramic windows that invite natural light and breathtaking views of the surrounding mountains. Step outside to over an acre of your private resort-style backyard complete with a 2 bedroom guest house with dual kitchens, a shimmering pool, spa, and stunning mountain views. The outdoor kitchen and fire pit provide the perfect setting for gatherings under the desert stars. Located in one of Arizona's most prestigious private neighborhoods, this home offers proximity to world-class dining, shopping, and golf courses, all while providing a serene retreat from the outside world. Don't miss this rare opportunity to own a piece of authentic Paradise Valley luxury.

6110 E Caballo Lane Paradise Valley, AZ 85253

$7,850,000
5 Beds
7 Baths
7,124 SqFt
Status Active
MLS # 6763087
Property Type Single Family Residence
Price Type --
This impressive very private gated 2.13 ACRE Cal Christiansen estate has 1.6 usable ACRES plus a ½ acre of golf course easement. The grounds feature a sunken tennis court (pickleball lines), pool w/ waterfall, spa, pizza oven, large grass area + garages for 10 cars. Including the separate guest house, there are 5 bedrms, 7 baths and 7,124 sf of luxurious living. Open + light w/ high ceilings, 5 fireplaces and attention to detail! The family rm w/ pub bar seamlessly connects indoor-outdoor living spaces via French accordion doors. A Car Collectors dream this temperature controlled garage w/shop has 16 ft vaulted wood ceilings + beams, 2 outdoor entrances and it also doubles as a party space!

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