Mortgage Prequal Calculator

Introduction: The Mortgage Prequalification Calculator is a tool to help you estimate the mortgage loan amount you may prequalify for based on your financial information. By considering your annual income, monthly debt, interest rate, and loan term, this calculator provides an initial assessment of your prequalification potential.

Formula: The prequalification amount is calculated using the following formula:

Prequal Amount=Monthly Income×0.28(Interest Rate100)×12Prequal Amount=(100Interest Rate​)×12Monthly Income×0.28​

The debt-to-income ratio is also calculated:

Debt-to-Income Ratio=(Monthly DebtMonthly Income)×100Debt-to-Income Ratio=(Monthly IncomeMonthly Debt​)×100

How to Use:

  1. Enter your annual income.
  2. Input your monthly debt.
  3. Specify the interest rate.
  4. Enter the loan term in years.
  5. Click the “Calculate” button.

Example: Suppose you have an annual income of $60,000, monthly debt of $800, an interest rate of 4.5%, and a loan term of 30 years. Using the Mortgage Prequalification Calculator, you can estimate your prequalified loan amount.


  1. Q: What is mortgage prequalification? A: Mortgage prequalification is an initial assessment of how much you may be eligible to borrow based on your financial information.
  2. Q: How is the prequalification amount calculated? A: The prequalification amount is calculated using a percentage of your monthly income and considering the loan term and interest rate.
  3. Q: Why is the debt-to-income ratio important? A: Lenders use the debt-to-income ratio to assess your ability to manage monthly payments relative to your income.
  4. Q: What is a good debt-to-income ratio for mortgage prequalification? A: A lower debt-to-income ratio is generally preferred, and a ratio below 28% is often considered good.
  5. Q: Can I prequalify for a mortgage with bad credit? A: Lenders may still offer prequalification, but interest rates and loan terms could be less favorable.
  6. Q: Can I use prequalification for any home purchase? A: Prequalification provides an estimate and is typically used for preliminary home shopping. A formal loan application is needed for approval.
  7. Q: How does the loan term impact prequalification? A: A longer loan term may increase the prequalification amount, but consider the total interest paid over the loan’s life.
  8. Q: Can I include other expenses in the prequalification calculation? A: This calculator focuses on income, debt, and basic mortgage factors. Consult with a lender for a more comprehensive assessment.
  9. Q: What are the next steps after prequalification? A: After prequalification, the next steps involve a formal mortgage application, approval, and closing processes.
  10. Q: Can I adjust my prequalification amount by changing the loan term or interest rate? A: Yes, adjusting the loan term or interest rate will impact the prequalification amount. Be mindful of your financial goals.

Conclusion: Utilize the Mortgage Prequalification Calculator to get an initial idea of the mortgage loan amount you may prequalify for. Remember that this is an estimate, and consulting with a mortgage professional for personalized advice is essential for making informed decisions.

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