Use this calculator to see the home you can afford if you make $130,000 in a year
For Interest Rate: 6%
Loan Term: 30 years
You will receive loan of $343,312.74
Okay, so let's imagine you make $130,000 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 $24,700 a year, or $2,058.33 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 ($10,833.33), you can only spend up to $3,466.67 on monthly mortgage. At 6% interest rate and 20 year loan term, you can take the home loan of value $483.9K (without down payment)
If you extend the loan term to 25 years.
With monthly income of $10,833.33. With 6% interest, you will receive a loan of $538.1K (without down payment).
Your monthly interest payment remains the same $3,466.67
You will make total 300 installments
You will have to pay total amount of $1,040,000, which is 93.29% more than your original loan amount ($538,050.46)
For 6% interest, you will receive a loan of $578.2K (without down payment) for loan term of 30 years
Your monthly interest payment remains the same $3,466.67
You will make total 360 installments
You will have to pay total amount of $1,248,000, which is 115.84% more than your original loan amount ($578,210.93)
The longer the loan duration, the more money you will pay collectively
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,466.67 | 20 | 1% | $753,796.39 |
| $3,466.67 | 20 | 2% | $685,269.99 |
| $3,466.67 | 20 | 3% | $625,077.84 |
| $3,466.67 | 20 | 4% | $572,075.78 |
| $3,466.67 | 20 | 5% | $525,287.75 |
| $3,466.67 | 20 | 6% | $483,880.01 |
| $3,466.67 | 20 | 7% | $447,139.36 |
| $3,466.67 | 20 | 8% | $414,454.88 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,466.67 | 25 | 1% | $919,851.43 |
| $3,466.67 | 25 | 2% | $817,891.04 |
| $3,466.67 | 25 | 3% | $731,038.37 |
| $3,466.67 | 25 | 4% | $656,768.61 |
| $3,466.67 | 25 | 5% | $593,008.16 |
| $3,466.67 | 25 | 6% | $538,050.46 |
| $3,466.67 | 25 | 7% | $490,487.93 |
| $3,466.67 | 25 | 8% | $449,157.01 |
| Monthly Payment | Loan Years | Interest Rate | Home Loan Amount |
|---|---|---|---|
| $3,466.67 | 30 | 1% | $1,077,811.17 |
| $3,466.67 | 30 | 2% | $937,901.52 |
| $3,466.67 | 30 | 3% | $822,256.52 |
| $3,466.67 | 30 | 4% | $726,132.3 |
| $3,466.67 | 30 | 5% | $645,776.27 |
| $3,466.67 | 30 | 6% | $578,210.93 |
| $3,466.67 | 30 | 7% | $521,066.24 |
| $3,466.67 | 30 | 8% | $472,449.45 |