# House Affordability Calculator

Exceltemplates.org – When you want o buy new house with mortgage, you need to ensure that you could afford it. This House Affordability Calculator will help you calculate your affordability to buy new house roughly before you go to the financial advisors. At least, you have some preparation and will not embarrass when you meet the advisor.

In mortgage, there are commonly two payment types. The first is front payment. It is commonly consisting of down payment and closing cost. The second payment type is the monthly mortgage.

## Using House Affordability Calculator Spreadsheet Template

To make it practical, this template is made in two worksheets. The first sheet is quick calculation if you want to know your affordability based on expected monthly payment. In this sheet, what you need to do is to fill the cells with corresponding value. The cells are expected monthly payment, loan payment period, and interest rate. Once you finish, the calculator will show you the maximum house price you can afford.

The second worksheet of this House Affordability Calculator will give you more details in the calculation. You need to fill more information about your financial condition, budget prepared, mortgage plan, qualification of the bank or other financial institutions that that you prefer. The calculator will give you result of the maximum house price that close to your conditions.

In order to help you understand the calculator, we will give you the short description of each cell.

In “Income and Debt Expenses” section, you will find two cells: “Gross Monthly Income” and “Monthly Debt Repayment”. The first cell is your gross income per month while the second is your total obligation to repay your debt every month, including car loan, credit card expenses, etc.

Check this template >  Depreciation Calculator

In “Budget” section, you will find three cells: “Down Payment and Closing Cost”, “Monthly Payment”, and “Monthly Housing Costs”. The first cell is the total amount of down payment and all costs that may arise when you buy a house such as taxes, legal fees, etc. Monthly payment is the amount of monthly mortgage payment you expected. Monthly Housing cost is total of additional cost that should be paid monthly such as insurances.

In “Mortgage Plan” section, you will find two cells. The first is “interest rate” that set by the bank or other financial institution. If you do not have the information, you can fill it with your expected interest. The second cell is “Payment Period” that would be your plan to payoff the mortgage.

In “Qualification” section, you will find four cells need to be filled: “Closing Costs”, “Minimum Down Payment Required”, “Maximum Debt Repayment Allowed”, and “Maximum Housing Expenses Allowed”. The qualification should be filled with percentage. You need to check your bank or financial institution to get the number.

The result of this House Affordability Calculator is the maximum house price that you can afford at your current condition. That means, if you want to buy new house, you need to buy something lower than the calculation result. However, since this calculator only gives you rough calculation, you need to consult with bank or financial institution for clear and dependable calculation.