Calculate your monthly payments, total loan cost, and borrowing capacity. Two modes: loan calculator and reverse capacity estimator.
Your borrowing capacity depends on three main factors: your income, your existing debts, and the current interest rate. Lenders use a debt-to-income ratio (DTI) to determine how much monthly payment you can afford. In the US, most conventional loans allow a DTI up to 36-43%.
The interest rate has a dramatic impact on your monthly payment and total cost. On a $300,000 loan over 30 years, the difference between a 4% rate and a 7% rate is roughly $570 per month, or over $200,000 in total interest paid over the life of the loan.
A larger down payment reduces your loan amount, which lowers both your monthly payment and total interest. Putting down 20% or more also eliminates the need for private mortgage insurance (PMI), saving you additional money each month.
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