The Affordable House Calculator is designed to make it very easy to answer the question, "How much house can I afford?". It considers income, taxes, loan payments and maintenance.

To use this calculator, you'll need to provide seven inputs:

• Buyer's annual income: Enter the total amount of money you earn in a year before taxes and other deductions.
• Cash available: Enter the amount of money you have available for a down payment and closing costs.
• Number of payments: Enter the number of payments you plan to make on your mortgage. This is typically 30 years (360 monthly payments) for a traditional mortgage although 15 year mortgages are also popular.
• Annual interest rate: Enter the annual interest rate for your mortgage. This rate is expressed as a percentage.
• Percentage of income to spend: Enter the percentage of your annual income that you're willing to spend on housing costs. This includes mortgage payments, taxes, insurance, and maintenance.
• Annual taxes & insurance: Enter the annual estimated cost of property taxes and homeowners insurance.
• Annual maintenance costs: Enter the estimated annual cost of maintaining your home, including repairs and upkeep.

Once you've entered all of your information, the calculator will provide you with the following information:

• Total affordable house price: This is the total amount you can afford to spend on a home, based on your income, expenses, and other factors.
• Annual housing cost: This is the total cost of owning and maintaining your home each year, including mortgage payments, taxes, insurance, and maintenance.
• Mortgage amount financed: This is the amount of money you will need to borrow to purchase your home.
• Monthly mortgage payment: This is the amount you will need to pay each month to cover your mortgage payment.

Please note that this calculator provides estimates based on the information you provide. Actual costs and payments may vary depending on a variety of factors, including the specific terms of your mortgage and the cost of living in your area. It's always a good idea to consult with a financial professional before making any major financial decisions.

Shortcomings of the calculator

• The calculator assumes that all expenses remain constant over time and doesn't account for any unforeseen increases in costs.
• The calculator doesn't consider other financial obligations such as debts, student loans, or other monthly expenses.
• The calculator doesn't factor in changes in interest rates over time (if you select an ajustable rate mortgage).
• The calculator doesn't consider the possibility of unexpected expenses, such as major repairs or home renovations.

Financial risks of buying a house

• Owning a home comes with many expenses that can add up quickly, including mortgage payments, property taxes, insurance, and maintenance costs.
• If you are unable to keep up with your mortgage payments, you risk foreclosure and the loss of your home.
• The housing market can be unpredictable, and the value of your home may fluctuate over time. This can impact your ability to sell your home in the future and may affect your overall financial stability.
• In some cases, owning a home can be more expensive than renting, especially if you are unable to secure a low-interest rate on your mortgage or if unexpected expenses arise.

It's important to carefully consider all of these factors before making a decision to purchase a home.

This calculator, while called an "Affordable House Calculator", can actually be used for determining the affordability of any building or property. This is a common trait of many financial calculators. They can be used for similar, though different, calculations. It can be confusing, but we're here to help. Just post your questions below.