**Introduction:** Understanding the mortgage you can comfortably afford is crucial when considering homeownership. Our Mortgage I Can Afford Calculator helps you assess the affordable loan amount based on factors such as annual income, expenses, down payment, interest rate, and loan term.

**Formula:** The calculator uses the debt-to-income ratio to estimate the affordable monthly payment. It then calculates the corresponding loan amount and provides the total affordable loan amount based on the specified down payment percentage.

**How to Use:**

- Enter your annual income.
- Input your annual expenses.
- Specify the down payment percentage you plan to make.
- Provide the annual interest rate offered.
- Specify the loan term in years.
- Click the “Calculate” button to get an estimate of the mortgage you can afford.

**Example:** Suppose you have an annual income of $80,000, annual expenses of $45,000, a down payment of 20%, an annual interest rate of 4%, and a loan term of 25 years. After clicking “Calculate,” the result will display the estimated mortgage amount you can afford.

**FAQs:**

**Q: What does the debt-to-income ratio represent?**- A: It’s the percentage of your monthly income used to cover your monthly debts, including the proposed mortgage payment.

**Q: Is the down payment percentage important for affordability?**- A: Yes, a higher down payment increases affordability by reducing the loan amount.

**Q: How accurate is the affordability estimate provided by the calculator?**- A: The calculator provides a rough estimate. Consult with a mortgage professional for a more accurate assessment.

**Q: Can I include bonuses or irregular income in my annual income?**- A: It’s advisable to use a stable, regular income for a more conservative estimate.

**Q: Is a higher down payment always better for affordability?**- A: A higher down payment can increase affordability, but it’s important to consider your overall financial situation.

**Conclusion:** Our Mortgage I Can Afford Calculator is a valuable tool to help you assess the mortgage you can comfortably manage. Use it as a starting point for your homebuying journey and consult with a mortgage professional for personalized advice.