Excel Model: Mortgage Affordability Calculator

Title: Mortgage Affordability Calculator

 Description:

 

This spreadsheet is designed to help potential homeowners determine how much mortgage they can afford based on their financial situation. It includes sections for both standard mortgage and FHA mortgage calculations, comparing various loan terms and the associated costs.

 

  • Loan Information: Enter key details about your income, current savings, home sale price, mortgage rates, and other financial parameters.
  • Standard Mortgage Calculation: Provides a detailed breakdown of costs and payments for a standard mortgage over different terms.
  • FHA Mortgage Calculation: Offers a comparison of FHA mortgage costs and payments over different terms.

 

Advice/Tips:
  • Loan Information:
    • Ensure all financial details are accurately entered to get a precise affordability estimate.
    • Regularly update the loan information as your financial situation changes.
  • Standard Mortgage Calculation:
    • Review the breakdown of costs and payments for various loan terms to choose the best option.
    • Compare the total payments and interest to make an informed decision.
  • FHA Mortgage Calculation:
    • Understand the differences in costs and payments between a standard mortgage and an FHA mortgage.
    • Use the comparison to decide which mortgage type suits your financial situation better.

Source: Custom Calculator

Click the following icon to open the full workbook viewer in a new tab, allowing you to easily edit and save.

Click the following icon to download the spreadsheet, allowing you to save the file on your computer along with edits.

Example of using calculator:

Detailed example of using Spreadsheet: Tasks for user to complete:

 

  1. Loan Information Section:
    • Enter your income, current savings, home sale price, mortgage rates, and other relevant financial details.
      • Example values:
        • First Salary: $75,000
        • Second Salary: $50,000
        • Home Sale Price: $300,000
        • FHA Down Payment %: 5%
        • FHA Mortgage Rate: 5.50%

  2. Standard Mortgage Calculation:
    • Review the total payments and interest for different loan terms.
      • Example values:
        • 2 Years: $151,536.97
        • 5 Years: $243,842.42
        • 10 Years: $397,684.85

  3. FHA Mortgage Calculation:
    • Compare the costs and payments with the standard mortgage.
      • Example values:
        • 2 Years: $106,915.15
        • 5 Years: $223,919.13
        • 10 Years: $415,292.01

Why is interactive calculator useful:

This spreadsheet helps users make informed decisions about mortgage affordability by providing a detailed comparison of standard and FHA mortgage costs over different loan terms. It consolidates all relevant financial information in one place, making it easier to understand the long-term financial commitments of a mortgage.

 

Source: Custom Spreadsheet

Conclusion:

The Mortgage Affordability Calculator is an essential tool for prospective homeowners to evaluate their mortgage options based on their financial situation. By providing a detailed and organized approach to comparing standard and FHA mortgage costs, it helps users make informed decisions about their mortgage affordability. Regular updates and reviews ensure that the affordability estimate remains accurate as financial circumstances change.

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