Question
Backwards mortgage calculation?
There are several sites on the Internet that let you input your mortgage value, interest rate and number of years, then tell you what your monthly payment will be. Like these: www ... news ... However I'm trying to do the calculation the opposite way round- I want to input my monthly payment, interest rate and number of years, and get told what house value I can afford to get. Is there any site on the internet that does this calculation for you, or even better can somebody explain the formula to do that? Thanks
10 months ago - 2 answers
Best Answer
Chosen by Asker
Just do it the standard way and reduce or increase the mortgage until you get the house payment you want. It shouldn't take more than 5 or 6 tries.
by Howard L
10 months ago
Asker's Rating: 
Other Answers
When you do that, just remember that those calculators are only estimates, and do not take into consideration the monthly amount you have to pay into the escrow fund for Private Mortgage Insurance and taxes, or the monthly amount for your Homeowner's Insurance. Depending on the purchase price and value of the home, those things can easily add an additional few hundred onto your monthly payment. Just an FYI so you dont get yourself in over your head.
by lathom01- 10 months ago