Home Affordability calculator computes the price of the house you can afford today. Enter your maximum monthly EMI, current savings for the down payment, home loan interest rate, and loan tenure. This calculator will tell you the price of the house which you can buy today.
The first step in the home buying journey is to know how much how you can afford. Fintra has created a home loan affordability calculator to help you understand your budget for your dream home. Simply enter your monthly EMI, down payment amount, home loan interest rate, time period of the loan, and you will get your amount.
How Much Home Can I Really Afford?
There is a general 28/36 Rule for Affordability. According to this rule, your Home Loan EMI should be less than 28% of your pre-tax income. Also, Total loans (Home, Car, personal, etc) should be less than 36% of your pre-tax income. Lenders definitely look at these parameters along with Credit Score before issuing you a loan.
Multiple below given factors affect Home Loan affordability such as:
1. Income: Income is amongst the most crucial factor for your loan affordability. Having a stable income increases the chances and you will get a much better picture of what amount of loan you'll comfortably repay.
2. Age: Younger people have a higher probability of getting the large loan amount due to long repayment ability as compared to an older individual.
3. Income Sources: Having multiple income sources increases the chances of getting a loan.
4. Current EMIs: Having a large number of Existing loans and their EMIs will have a negative impact on house affordability.
5. Credit score: A better credit rating makes the authorization process faster and easier and vice versa.