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Your ability to obtain a mortgage loan is based on multiple (and sometimes complicated) factors. And if you’re just beginning to explore your mortgage options, you’re best-off consulting a mortgage lending professional.

However, if you already have a basic understanding of the mortgage process, this calculator can give you glimpse at how home lending decisions are made. Here are some tips to help you get started:

  • Loan-to-value ratio (LTV)
    This represents the ratio of the loan amount to the value of the home. Lenders ideally want to see an 80% LTV, meaning a 20% down payment is preferred.
  • Housing Ratio
    This is the percentage of your total income that goes towards housing expenses.
  • Debt-to-Income Ratio
    This is your total debt payments, plus housing expenses as a percentage of your total income. Lenders will typically look at any of these ratios as constraints, meaning once any of these ratio limits is reached, the amount of the loan will be capped.

See how these factors could affect the mortgage amount you’re approved for: 

Disclaimer: Estimates are for educational purposes only and do not represent a financing offer from Dupaco Community Credit Union.

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