What mortgage calculator is best? Use ours to see what you can afford

Maybe you’re tired of renting and seeing your money pay off someone else’s mortgage. Or maybe you feel ready to switch gears and move into a space that has your name on it.

If you’re starting to think about owning your own home and crunching the numbers around what you can afford, you may wonder what mortgage calculator will help answer that question. Our calculator has got you covered. 

Whether it’s your first time or not, congratulations! This is a huge journey you are about to embark on, and we can’t wait for you to get started. Credit union experts are here to help ensure you have the information you need to dive into it properly.

What mortgage calculator should I use to see what I can afford?

Since this is one of the biggest decisions you will make in your life, it’s important to ask yourself one key question: How much house can you really afford? Once you do, a second question will then likely come up, as you wonder what mortgage calculator can help you figure out that answer. 

Our mortgage calculator is an informative tool, and it’s as accurate as the numbers you enter. What that means: The clearer you are on the price range of your potential house, the more accurate the calculator’s numbers will be. How mortgage calculators work, for example, depends entirely on the budget you put into them. That’s why it’s important to be truthful with yourself when asking these questions, even if the answer isn’t the one you’d hoped for.

This is an educational tool and we advise you speak to an expert—your credit union team, for instance—as you learn more about how to get a mortgage.

Credit union experts are here to help you navigate these conversations, with refreshingly honest advice that will help provide you answers.

How can mortgage calculators help?

These calculations are based on the data you have entered, its accuracy, and completeness. This should never be the only tool you use to determine how much house you can afford, and what mortgage payment best fits your budget. 

Please note this tool is intended for educational purposes, and that actual mortgage payment amounts may differ. These will be determined when you are approved for a residential mortgage loan. It’s important to note, as well, that the amount borrowed noted in this calculator assumes that minimum down payment requirements (if applicable) have been met, and that it includes default mortgage insurance premiums.

We always recommend you connect with your credit union and meet with financial experts when making financial decisions, especially ones as big as whether to buy a house.

How financial institutions determine your mortgage rate 

Financial institutions or mortgage lenders take several factors into account. This includes your credit score, household income (along with proof that it’s steady), existing debts, and the amount you’ll put down as down payment. This information helps institutions decide whether to lend to you, what interest rate you qualify for, and how much you can afford.

Most institutions will also run potential applicants through a mortgage stress test. Because interest rates and cost of living can change dramatically over time, they need to ensure you can afford your mortgage even during the toughest of times.

As scary as it sounds, this test is a good thing. It protects you against becoming house poor, and helps you be realistic when determining how much house is right for you, and your budget. It’s a key part of the refreshingly honest advice you can expect at your credit union, as well.

Eager to learn more? Browse our homebuying resources

You’ve calculated how much house you think you can afford and have a better sense of what mortgage payment suits your budget. Now it’s time to learn more about homebuying.

Our guide to homebuying is a great resource that will give you all the information you need (and some honest advice we promise you’ll love) as you look to buy your first (or next) home.