mortgage marvel logo

Mortgage Calculator: Maximum Mortgage Calculator

No one wants to get declined for a mortgage! That is why determining the maximum mortgage limit prior to applying for a home mortgage is an important step. Instead of wondering what the maximum mortgage may be, crunching the numbers on our Maximum Mortgage Calculator will provide individuals with the accurate parameters for their mortgage-shopping needs.

The maximum mortgage a home buyer can qualify for is dependent on a number of factors, including income and current monthly debt payments. Mortgage Marvel’s Maximum Mortgage Calculator will allow consumers to load all these important variables into our program and will return the maximum mortgage amount.

This Financial Calculator requires a Browser with Java(TM) applet Support. If you are seeing this message you will need to download SUN's Java(TM) Plug-in. This can be done simply, and automatically, by clicking the link below:

Get the Java(TM) Plug-in!


Monthly Income
This term refers to the total monthly income from all sources. Income entered into the Maximum Mortgage Calculator should be before taxes.

Monthly Housing Expenses
In relation to a Mortgage Marvel mortgage calculator, this term reflects the total monthly household costs gathered from the housing expenses worksheet embedded in the Maximum Mortgage Calculator. The items entered as housing expenses make up the taxes and insurance portion of a monthly PITI payment.

Monthly Liabilities
This term reflects the total monthly liabilities gathered from the liabilities worksheet embedded in the Maximum Mortgage Calculator. The calculated monthly liabilities are used to calculate the maximum PITI.

Monthly Housing Payment (PITI)
This amount reflects a home buyer’s total Principal, Interest, Tax and Insurance (PITI) payment per month. This includes the principal, interest, real estate taxes, hazard insurance, association dues or fees and private mortgage insurance (PMI). The maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:
  • Monthly Income X 28 percentage = monthly PITI
  • OR
  • Monthly Income X 36 percentage - Other loan payments = monthly PITI

Maximum Principal and Interest (P&I)
This refers to the maximum monthly principal and interest payment. The total is calculated by subtracting monthly taxes and insurance from monthly PITI payment. The Maximum Mortgage calculator uses the maximum P&I payment to estimate the mortgage amount for which consumer can qualify.

Start Interest Rates At
This refers to the current interest rate borrowers could receive on a mortgage, and is used as the starting point for displaying a range of interest rates and the resulting mortgage amount.

Term in Years
The number of years over which the home loan must be paid. The most common mortgage loan terms are 30 years and 15 years. For balloon mortgages, the most common terms are 5 years and 7 years. After that time period concludes, individuals will need to either refinance or pay off the remaining balance. For interest only loans, consumers will have a balloon payment due for the entire principal balance at the end of the loan term.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.