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Affordability: drag other debts

Drag other monthly debts. Gross pay, tax, insurance and the mortgage rate stay still, so the loan ceiling moves only because the back-end room does. A larger car or card payment is a smaller mortgage, at the same income.

Max loan

$430,333.43

P and I budget

$2,720.00

Housing room is $3,220.00 after those debts. Tax and insurance stay $500.00. This is a ceiling, not a target. Illustrative arithmetic, not an underwriting decision or advice.

Gross monthly pay

$9,000.00 at a 43 percent back-end limit.

In short

  • Drag the bar right for more other debts and a smaller loan ceiling.
  • Drag it left toward no other debts and more room for principal and interest.
  • Watch housing room fall one for one with those debts, then tax and insurance come out.
  • Focus the handle and use the arrow keys to step the debts.

A ceiling, not a budget

How mortgage affordability works is the chain. How PITI works is the housing payment. The mortgage affordability calculator turns the leftover into a loan. How debt-to-income works is the ratio without a loan size.

Front-end is a different test

Front-end against back-end DTI is housing alone against all debts. Both tests have to pass, so the lower loan governs.

Principal is what the formula can support

Principal and interest are the leftover after tax and insurance. APR on the loan is the rate in the factor, not the DTI limit.

Common questions

Why does a car payment cut the mortgage?

Because the back-end test caps all monthly debt. What the car takes, the mortgage cannot.

Is this the amount to borrow?

It is a maximum under one ratio. It is not a household budget.

Is this an offer?

No. It is a 43 percent teaching sheet. It is educational material, not advice.

This page is educational material, not financial advice. The figures come from the formula shown and assume the inputs you enter hold for the whole term. Your own rate, fees, taxes and timing will differ, so treat the output as arithmetic to check a decision against, not as a recommendation.