Use this calculator to see the home you can afford if you make $120,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $316,904.07
Okay, so let's imagine you make $120,000 a year. That's a lot of money! Now, let's figure out how much of that you can spend on a house.
A person called a mortgage broker can help you decide. They might say you can spend 19% of your yearly income on your mortgage. That means you can spend $22,800 a year, or $1,900 each month on your mortgage.
According to Canada Mortgage and Housing Corporation ,upto 32%(preferred) of gross monthly household income can be spent on P.I.T.H (Principal, Interest, Taxes and Heating Solutions) The maximum limit is 39%.
So, according to your monthly income ($10,000), you can only spend up to $3,200 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $446.7K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $10,000. With 6% interest, you will receive a loan of $496.7K (without down payment).
Your monthly interest payment remains the same $3,200
You will make total 300 installments
You will have to pay total amount of $960,000, which is 93.29% more than your original loan amount ($496,661.96)
For 6% interest, you will receive a loan of $533.7K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $3,200
You will make total 360 installments
You will have to pay total amount of $1,152,000, which is 115.84% more than your original loan amount ($533,733.17)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,200 | 20 | 1% | $695,812.05 |
| $3,200 | 20 | 2% | $632,556.91 |
| $3,200 | 20 | 3% | $576,994.93 |
| $3,200 | 20 | 4% | $528,069.95 |
| $3,200 | 20 | 5% | $484,881 |
| $3,200 | 20 | 6% | $446,658.47 |
| $3,200 | 20 | 7% | $412,744.02 |
| $3,200 | 20 | 8% | $382,573.73 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,200 | 25 | 1% | $849,093.63 |
| $3,200 | 25 | 2% | $754,976.35 |
| $3,200 | 25 | 3% | $674,804.65 |
| $3,200 | 25 | 4% | $606,247.95 |
| $3,200 | 25 | 5% | $547,392.15 |
| $3,200 | 25 | 6% | $496,661.96 |
| $3,200 | 25 | 7% | $452,758.09 |
| $3,200 | 25 | 8% | $414,606.47 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,200 | 30 | 1% | $994,902.62 |
| $3,200 | 30 | 2% | $865,755.25 |
| $3,200 | 30 | 3% | $759,006.02 |
| $3,200 | 30 | 4% | $670,275.97 |
| $3,200 | 30 | 5% | $596,101.17 |
| $3,200 | 30 | 6% | $533,733.17 |
| $3,200 | 30 | 7% | $480,984.22 |
| $3,200 | 30 | 8% | $436,107.18 |