Loan Prequalification Calculator
Using a Pre-Qualification Loan Calculator
Using a pre-qualification loan calculator can help you determine a range of affordability for a home, and how much cash you'll need for closing costs and a down payment. Having this information before you start looking for a new home or home refinance options can help focus your efforts on affordable options. By playing with the income, down payment, expenses, and loan information, you can see how these factors influence what you can afford for housing.
In order to pre-qualify for a mortgage or home refinance, you'll want to ensure that your proposed housing payment and total monthly payment obligations dont exceed 28% and 36% respectively. The housing ratio includes amounts for principle and interest, property taxes, and insurance. Your total monthly obligations include your housing expenses as estimated by the pre-qualification calculator, plus recurring monthly expenses such as car loans, student loans, and family support payments. The figures provided by a pre-qualification calculator are estimates only. Other factors can influence a lenders decision to pre-qualify you for a mortgage or home refinance loan.