Mortgage Home Loan Prequalification Calculator
This Mortgage Home Loan Prequalification Calculator helps you estimate the maximum loan amount you may qualify for based on your income, expected housing costs, and standard lending ratios.
Home Loan Prequalification Estimator
Mortgage Prequalification Formulas
\[
\text{Max Mortgage Payment} = (\text{Monthly Income} + \text{Other Income}) \times 0.28
\]
\[
\text{Loan Amount} = \frac{\text{Max Mortgage Payment} \times (1 – (1 + r)^{-n})}{r}
\]
Where:
- $$Monthly Income$$ = Main income per month
- $$Other Income$$ = Additional income sources per month
- $$Max Mortgage Payment$$ = Maximum allowable housing expense based on 28% rule
- $$r$$ = Monthly interest rate (annual rate divided by 12)
- $$n$$ = Total number of monthly payments (loan term)
- $$Loan Amount$$ = Estimated loan principal you may qualify for
The Mortgage Home Loan Prequalification Calculator provides a quick estimate of how much you might be eligible to borrow based on your income and expenses. It uses standard lending guidelines (typically 28% of gross income) to help you plan your home search and financing.