Home Affordability Calculator

HOA Dues (Yearly): These are fees paid to a homeowners association for maintenance and amenities in a community or building.

Homeowners Insurance (Yearly): This is the annual cost of insurance that protects your home and belongings against damage or loss.

Mortgage Insurance (Yearly): This is insurance that protects the lender if you default on the loan, often required for loans with a down payment less than 20%.

Other Expenses (Yearly): This can include any additional costs related to homeownership, like maintenance or utilities.

Your recommended budget should be a comfortable fit within your overall finances. You should aim to keep housing expenses below 28% of your monthly gross income. If you have additional debts, your housing expenses and those debts should not exceed 36% of your monthly gross income.

Your max purchase budget is the loan amount that lenders could probably give you based on what you’ve told us. However, spending up to the max may be an uncomfortable fit in your budget (about 43% of your total debts).

For certain individuals, their yearly income taxes do not reflect their actual income. This is especially true for those who are business owners, independent contractors, self-employed, freelancers, or retirees. This can make things difficult when it comes time to apply for a traditional mortgage loan, which measures a borrower’s income using pay stubs and tax returns. Due to this, entrepreneurs and those who do not receive a W2 from an employer often do not qualify for conventional mortgage loans.

A bank statement loan is the perfect solution for those who need an alternate way to verify their income to ensure mortgage approval. Instead of qualifying for a home loan based on your income taxes, bank statement loans are a non-qualified mortgage loan where qualification is based on your bank statements as opposed to your tax returns.

With a bank statement loan, lenders typically requires between 12 and 24 months of bank statement deposits.to prove you are financially able to repay the loan. To see if you qualify for this type of financing, call our team at NW Alternative Mortgage today at 503-343-7999.

The best strategy to pay off your mortgage loan early involves making additional principal payments each month. By increasing your monthly payment or making lump-sum payments, you reduce the principal balance faster, which in turn reduces the amount of interest accrued over time. Refinancing to a shorter loan term can also be beneficial, as it typically comes with a lower interest rate and higher monthly payments, accelerating the payoff process. Additionally, applying any unexpected income, such as bonuses or tax refunds, directly to your mortgage can further expedite the repayment.