Home Affordability worksheet

1. Maximum home price: $339,074.32

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$100,000.00}}{12}$$=\mathrm{\$8,333.33}$

2. Housing limit: up to 26% of your monthly income can go to housing

   $\mathrm{\$8,333.33}\times \mathrm{26\%}$$=\mathrm{\$2,166.67}$

3. Total debt limit: 36% of your monthly income, minus what your other debts already take

   $\mathrm{\$8,333.33}\times \mathrm{36\%}-\mathrm{\$700.00}$$=\mathrm{\$2,300.00}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the housing limit)

   $H$$=\mathrm{\$2,166.67}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00659956+\frac{\mathrm{0\%}}{12}$$=0.00659956$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1\%}}{12}$$=0.00083333$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,166.67}-\mathrm{\$108.33}+0.00659956\times \mathrm{\$70,000.00}}{\left(0.00659956+0.00083333\right)}$$=\mathrm{\$339,074.32}$

2. Maximum home price: $530,673.33

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$142,500.00}}{12}$$=\mathrm{\$11,875.00}$

2. Housing limit: up to 38% of your monthly income can go to housing

   $\mathrm{\$11,875.00}\times \mathrm{38\%}$$=\mathrm{\$4,512.50}$

3. Total debt limit: 30% of your monthly income, minus what your other debts already take

   $\mathrm{\$11,875.00}\times \mathrm{30\%}-\mathrm{\$550.00}$$=\mathrm{\$3,012.50}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the total debt limit)

   $H$$=\mathrm{\$3,012.50}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00477415+\frac{\mathrm{0\%}}{12}$$=0.00477415$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1.3\%}}{12}$$=0.00108333$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$3,012.50}-\mathrm{\$166.67}+0.00477415\times \mathrm{\$55,000.00}}{\left(0.00477415+0.00108333\right)}$$=\mathrm{\$530,673.33}$

3. Maximum home price: $288,841.53

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$150,000.00}}{12}$$=\mathrm{\$12,500.00}$

2. Housing limit: up to 26% of your monthly income can go to housing

   $\mathrm{\$12,500.00}\times \mathrm{26\%}$$=\mathrm{\$3,250.00}$

3. Total debt limit: 22% of your monthly income, minus what your other debts already take

   $\mathrm{\$12,500.00}\times \mathrm{22\%}-\mathrm{\$680.00}$$=\mathrm{\$2,070.00}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the total debt limit)

   $H$$=\mathrm{\$2,070.00}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00716431+\frac{\mathrm{0\%}}{12}$$=0.00716431$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1.2\%}}{12}$$=0.001$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,070.00}-\mathrm{\$141.67}+0.00716431\times \mathrm{\$60,000.00}}{\left(0.00716431+0.001\right)}$$=\mathrm{\$288,841.53}$

4. Maximum home price: $384,002.16

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$110,000.00}}{12}$$=\mathrm{\$9,166.67}$

2. Housing limit: up to 24% of your monthly income can go to housing

   $\mathrm{\$9,166.67}\times \mathrm{24\%}$$=\mathrm{\$2,200.00}$

3. Total debt limit: 45% of your monthly income, minus what your other debts already take

   $\mathrm{\$9,166.67}\times \mathrm{45\%}-\mathrm{\$600.00}$$=\mathrm{\$3,525.00}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the housing limit)

   $H$$=\mathrm{\$2,200.00}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00586753+\frac{\mathrm{0\%}}{12}$$=0.00586753$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1\%}}{12}$$=0.00083333$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,200.00}-\mathrm{\$166.67}+0.00586753\times \mathrm{\$92,000.00}}{\left(0.00586753+0.00083333\right)}$$=\mathrm{\$384,002.16}$

5. Maximum home price: $339,895.38

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$110,000.00}}{12}$$=\mathrm{\$9,166.67}$

2. Housing limit: up to 35% of your monthly income can go to housing

   $\mathrm{\$9,166.67}\times \mathrm{35\%}$$=\mathrm{\$3,208.33}$

3. Total debt limit: 36% of your monthly income, minus what your other debts already take

   $\mathrm{\$9,166.67}\times \mathrm{36\%}-\mathrm{\$450.00}$$=\mathrm{\$2,850.00}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the total debt limit)

   $H$$=\mathrm{\$2,850.00}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.0083309+\frac{\mathrm{0\%}}{12}$$=0.0083309$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1.3\%}}{12}$$=0.00108333$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,850.00}-\mathrm{\$150.00}+0.0083309\times \mathrm{\$60,000.00}}{\left(0.0083309+0.00108333\right)}$$=\mathrm{\$339,895.38}$

6. Maximum home price: $448,140.62

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$120,000.00}}{12}$$=\mathrm{\$10,000.00}$

2. Housing limit: up to 26% of your monthly income can go to housing

   $\mathrm{\$10,000.00}\times \mathrm{26\%}$$=\mathrm{\$2,600.00}$

3. Total debt limit: 32% of your monthly income, minus what your other debts already take

   $\mathrm{\$10,000.00}\times \mathrm{32\%}-\mathrm{\$560.00}$$=\mathrm{\$2,640.00}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the housing limit)

   $H$$=\mathrm{\$2,600.00}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00561531+\frac{\mathrm{0\%}}{12}$$=0.00561531$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1\%}}{12}$$=0.00083333$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,600.00}-\mathrm{\$131.25}+0.00561531\times \mathrm{\$75,000.00}}{\left(0.00561531+0.00083333\right)}$$=\mathrm{\$448,140.62}$

7. Maximum home price: $470,148.94

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$125,000.00}}{12}$$=\mathrm{\$10,416.67}$

2. Housing limit: up to 36% of your monthly income can go to housing

   $\mathrm{\$10,416.67}\times \mathrm{36\%}$$=\mathrm{\$3,750.00}$

3. Total debt limit: 38% of your monthly income, minus what your other debts already take

   $\mathrm{\$10,416.67}\times \mathrm{38\%}-\mathrm{\$600.00}$$=\mathrm{\$3,358.33}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the total debt limit)

   $H$$=\mathrm{\$3,358.33}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00704941+\frac{\mathrm{0\%}}{12}$$=0.00704941$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{0.9\%}}{12}$$=0.00075$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$3,358.33}-\mathrm{\$79.17}+0.00704941\times \mathrm{\$55,000.00}}{\left(0.00704941+0.00075\right)}$$=\mathrm{\$470,148.94}$

8. Maximum home price: $369,424.48

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$120,000.00}}{12}$$=\mathrm{\$10,000.00}$

2. Housing limit: up to 28% of your monthly income can go to housing

   $\mathrm{\$10,000.00}\times \mathrm{28\%}$$=\mathrm{\$2,800.00}$

3. Total debt limit: 45% of your monthly income, minus what your other debts already take

   $\mathrm{\$10,000.00}\times \mathrm{45\%}-\mathrm{\$500.00}$$=\mathrm{\$4,000.00}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the housing limit)

   $H$$=\mathrm{\$2,800.00}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00733765+\frac{\mathrm{0\%}}{12}$$=0.00733765$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1\%}}{12}$$=0.00083333$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,800.00}-\mathrm{\$166.67}+0.00733765\times \mathrm{\$52,500.00}}{\left(0.00733765+0.00083333\right)}$$=\mathrm{\$369,424.48}$

9. Maximum home price: $319,883.88

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$110,000.00}}{12}$$=\mathrm{\$9,166.67}$

2. Housing limit: up to 30% of your monthly income can go to housing

   $\mathrm{\$9,166.67}\times \mathrm{30\%}$$=\mathrm{\$2,750.00}$

3. Total debt limit: 38% of your monthly income, minus what your other debts already take

   $\mathrm{\$9,166.67}\times \mathrm{38\%}-\mathrm{\$660.00}$$=\mathrm{\$2,823.33}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the housing limit)

   $H$$=\mathrm{\$2,750.00}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00843857+\frac{\mathrm{0\%}}{12}$$=0.00843857$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{1.4\%}}{12}$$=0.00116667$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,750.00}-\mathrm{\$150.00}+0.00843857\times \mathrm{\$56,000.00}}{\left(0.00843857+0.00116667\right)}$$=\mathrm{\$319,883.88}$

10. Maximum home price: $362,725.79

1. Find your monthly income before tax: yearly income ÷ 12

   $\frac{\mathrm{\$130,000.00}}{12}$$=\mathrm{\$10,833.33}$

2. Housing limit: up to 20% of your monthly income can go to housing

   $\mathrm{\$10,833.33}\times \mathrm{20\%}$$=\mathrm{\$2,166.67}$

3. Total debt limit: 35% of your monthly income, minus what your other debts already take

   $\mathrm{\$10,833.33}\times \mathrm{35\%}-\mathrm{\$500.00}$$=\mathrm{\$3,291.67}$

4. You have to stay under both limits, so the lower one sets your housing budget H (here, the housing limit)

   $H$$=\mathrm{\$2,166.67}$

5. Find a: how much each $1 you borrow adds to your monthly payment, including any PMI

   $a$$=0.00599551+\frac{\mathrm{0\%}}{12}$$=0.00599551$

6. Find b: how much each $1 of home price adds in property tax each month

   $b$$=\frac{\mathrm{0.9\%}}{12}$$=0.00075$

7. Work backward from your budget H to the highest price whose loan, tax, insurance and HOA fit inside it

   $\mathrm{price}$$=\frac{\mathrm{\$2,166.67}-\mathrm{\$139.58}+0.00599551\times \mathrm{\$70,000.00}}{\left(0.00599551+0.00075\right)}$$=\mathrm{\$362,725.79}$