The amount that you can borrow depends on various factors. The primary thing considered by the lenders is how much you earn or your salary/wages. The monthly income is calculated by adding your salary and other income. The monthly expenditure is another consideration.

How Much Can I Borrow = {Monthly Income} – {Monthly Liabilities+ Monthly Housing Expenses+ Other Monthly Expenses}*

* depends on the Loan Term and Interest Rate

The lenders judge the amount you can borrow on the basis of your monthly income and monthly liabilities. The liabilities include your housing loan expenses, auto loan, credit card and other payments. If you have more of income and less liabilities then the amount that can be borrowed will be more while if your liabilities exceed your income then the amount to be borrowed will be less. The interest rates on the amount borrowed will depend on the rate prevailing as well as on the term of the loan. Use the following calculator to determine the maximum monthly payment (P+I) and the maximum loan amount for which you may qualify.

DISCLAIMER: The prequalification figures above are based upon conventional program guidelines. Other loan programs are available. Calculations by this tool are believed to be accurate, yet are not guaranteed. Further review is necessary to obtain an exact qualification. If you have less than 20% equity in your home, a monthly mortgage insurance payment may be required.