# House Affordability Calculators

How much house can I afford ? That is questions that arise when people is planning to buy a new house. When people is looking for a house to buy, there two things regarding financial issues that they usually considered. The first one is the front payment which consist of down payment and closing cost, and the second one is the monthly mortgage payment. They consider these things because they have to see their personal financial situation either they have enough money to pay both payments.

Usually they consult with their financial advisors or they just go the bank or financial institution to find out whether they can afford to buy a house based on their financial situation. This house affordability calculator will help you to get a rough figure about your affordability on buying a house. But, you have to remember that this is just a tool not a real reference.

This spreadsheet consist of two worksheets. The first worksheet is a simple house affordability calculator that will calculate house price quickly based on your expected monthly payment. Just fill your targeted interest rate, loan payment period and expected monthly payment and the house price will be revealed with a help of excel built-in function.

The second worksheet is a more detailed house affordability calculator, as you can see in the first picture, where you have to fill some detail information regarding your financial condition and your budget, your mortgage plan and your bank or financial institution qualification. And based on your inputs, this calculator will calculate the optimum house price based on the closest conditions you can achieve.

Short description regarding each cells in this worksheet are as follows :

Income and Debt Expenses
– Gross Monthly Income : Your gross income per month
– Monthly Debt Repayment : Your debt obligation that you have to pay monthly, for example your credit card loan, student loan, car loan etc.

Budget
– Down Payment and Closing Cost : I think you know what down payment means. And closing costs are any costs that arise in house transaction, like legal fee, administration fee, taxes etc
– Monthly Payment : This is your expected monthly mortgage payment
– Monthly Housing Costs : These are other housing costs in addition of your mortgage, like insurance, that you have to pay monthly along with paying your mortgage payment

Mortgage Plan
– Interest Rate : This is your expected interest rate based on bank or financial institution interest rate
– Payment Period : This is the period  (in year) that you plan to payoff your mortgage

Qualification
– Closing Costs : Check your bank or financial institution qualification for minimum closing costs. I put 5% from house price.
– Minimum Down Payment Required : Check your bank or financial institution qualification for minimum down payment needed.
– Maximum Debt Repayment Allowed : Check your bank or financial institution qualification for maximum percentage of debt repayment allowed from your gross income. The total of your debt repayment + house payment cannot exceed this number.
– Maximum Housing Expense Allowed (%) : This number will limit the amount of your monthly expenses that has been budgeted for paying your monthly mortgage.

After you finished filling the left part of this worksheet, you can see your affordable house price including the detail of down payment and closing cost needed along with allowable monthly payment.

Use this tool as your rough reference only. You can adjust any numbers inside the worksheet to suit your budget, but always consult with your bank to get more clear information and calculation regarding your house financial issues.