**Introduction:** Welcome to our Mortgage Eligibility Calculator. This tool helps you assess your eligibility for a mortgage by considering factors such as annual income, monthly debt, loan term, and interest rate. Knowing your eligible loan amount is crucial when planning to apply for a mortgage.

**Formula:** The calculator uses the debt-to-income ratio to determine the eligible loan amount. The formula is based on the monthly payment a borrower can afford, considering income, debt, loan term, and interest rate.

**How to Use:**

- Enter your annual income.
- Input your monthly debt.
- Specify the loan term in years.
- Enter the interest rate.
- Click the “Calculate” button.
- View your eligible loan amount.

**Example:** Suppose you have an annual income of $60,000, a monthly debt of $500, plan to take a 30-year loan, and have an interest rate of 4%. Use the Mortgage Eligibility Calculator to estimate your eligible loan amount.

**FAQs:**

*What is the debt-to-income ratio?*- It’s the percentage of your monthly income that goes toward debt payments.

*Why does the calculator consider annual income?*- Lenders assess eligibility based on the borrower’s ability to repay the loan, which involves income.

*Is the eligible loan amount guaranteed approval?*- No, it provides an estimate; actual approval depends on lender criteria.

*Can I use this calculator for other loans, like car loans?*- It’s specifically designed for mortgage eligibility.

*How does the loan term affect eligibility?*- A longer term may increase eligibility by lowering monthly payments.

*Is monthly debt limited to existing loans?*- Yes, it includes existing debt payments affecting your budget.

*What if I have other sources of income?*- The calculator focuses on annual income; additional income can improve eligibility.

*Can I change inputs after calculating?*- Yes, adjust values and recalculate for updated results.

*Does the calculator consider credit score?*- No, credit score is important but not factored into this calculator.

*Should I consider property taxes and insurance separately?*- Yes, these costs are not included; consult with a financial advisor.

**Conclusion:** Use our Mortgage Eligibility Calculator to estimate the loan amount you may be eligible for based on your income, monthly debt, loan term, and interest rate. While this tool provides a useful estimate, consult with a mortgage professional for accurate eligibility assessments and loan approvals.