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FREEandCLEAR launches the Rent Payment Mortgage Affordability Calculator
With the average monthly rent in many large cities such as New York and San Francisco exceeding record levels it can be interesting (and a tad bit sad) to understand what size mortgage you can afford based on your monthly rent payment. The FREEandCLEAR Rent Payment Mortgage Affordability Calculator allows you to do just that. Simply input your monthly rent and the calculator determines the 30 year fixed rate and 15 year fixed rate mortgages you can afford using current interest rates. Although there are many factors that determine your ability to qualify for a mortgage and buy a house, such as your monthly income, debt, credit score and down payment, this calculator is a useful tool for mortgage consumers to understand how their rent payment potentially translates into mortgage size.
For example, the median monthly rent in San Francisco is approximately $3,200. Based on current interest rates, a borrower paying $3,200 per month in rent could afford a 30 year fixed rate mortgage of approximately $670,000 and a 15 year fixed rate mortgage of approximately $482,000.
It’s important to highlight that the estimated mortgage amount you can afford is based solely on your monthly rent payment and does not take into account housing related expenses such as property tax and homeowners insurance or other potentially applicable expenses such as homeowners association (HOA) fees, private mortgage insurance (PMI) or FHA mortgage insurance premium (MIP). You should always consider total monthly housing expense, and not just your monthly mortgage payment, when determining what size mortgage you can afford.
The Rent Payment Mortgage Affordability Calculator is the the latest addition to the wide range of FREEandCLEAR mortgage calculators including our Mortgage Qualification Calculator, Buy Versus Rent Comparison Calculator and Fixed Rate Mortgage Calculator that help mortgage consumers understand what size mortgage they can afford. So check out the Rent Payment Mortgage Affordability Calculator and let us know what you think.
The FREEandCLEAR Mortgage Expert