Homtide's Mortgage Affordability Calculator helps you determine how much home you can afford based on your income and expenses. It’s a simple, reliable tool to guide your home-buying decisions and make budgeting easier.
When you’re considering buying a home, it’s essential to know that the mortgage payment you’re committing to will remain manageable, even if interest rates change. That’s where mortgage stress tests come in. Designed to assess affordability, our unique approach includes three custom scenarios to help ensure your home purchase is financially secure.
Each of our scenarios evaluates different potential market conditions, applying varying interest rates and loan terms. Here’s a breakdown:
This scenario assumes an interest rate of 4% over a 25-year term. It’s designed to evaluate affordability with lower borrowing costs, making it ideal for cautious homebuyers.
Our average scenario sets the interest rate at 4.74% for a 25-year loan term. This represents a typical market condition, helping you understand how your mortgage might perform under normal circumstances.
For a more challenging scenario, we use an interest rate of 5.5% over a 20-year term. This is our “stress test” condition, ensuring your mortgage remains affordable even under rising interest rates or shortened loan periods.
By considering these different scenarios, you can confidently choose a home price that’s well within your means. Our tests ensure that your mortgage remains affordable, regardless of economic changes.
With our unique approach, you get a clear, realistic view of your financial future.
Homtide’s affordability calculator is designed with your financial well-being in mind. It goes beyond standard calculations to incorporate custom mortgage stress tests, so you receive home price recommendations grounded in practical, real-world scenarios.
Buying a home is a major financial step, and understanding how much you can afford is key to a secure purchase. Homtide’s affordability calculator does more than deliver a quick estimate—it offers a comprehensive assessment of your buying power, taking into account your income, expenses, debt levels, down payment, and interest rate.
Our exclusive mortgage stress tests assess your budget under varying conditions, from conservative to more flexible scenarios. This unique approach ensures that the home price we recommend is not only feasible but also sustainable, even with changes in interest rates or loan terms.
Key Advantages: With Homtide’s calculator and custom stress tests, you gain confidence that the recommended home price is in sync with your budget and financial goals, allowing you to move forward with peace of mind.