# Home Mortgage Loan Calculator

## Finance - Fixed Rate Conventional Mortgage

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### Estimate of the home price you can afford

Your debt-to-income ratio is one of the tools that banks will use to calculate your loan eligibility and determine whether they'll lend you money for a mortgage, a car loan or a student loan. Both the front and back end ratios are crucial to understand! You should NOT talk to your bank unless you have first done analysis of these on your own!Click to use Back-end debt-to-income ratio Calculator

Back-end ratio is the percentage of income that goes toward paying all recurring debt payments, including those covered by front-end ratio, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments. Back-end ration should not be more than 36% for a new home loan.

Click to use Front-End Debt-to-Income Ratio Calculator

Front-end ratio is the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (mortgage principal and interest, mortgage insurance premium [when applicable], hazard insurance premium, property taxes, and homeowners' association dues [when applicable]). Front-end ration should not be more than 28% for a new home loan.

Calculate Loan-to-value ratio

The loan-to-value (LTV) ratio is a financial term used by commercial lenders to express the ratio of a loan underwritten to a value of an asset purchased. The term is commonly used by banks and building societies to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property.

Calculate Combined Loan To Value ratio if you have more than one loan

Combined Loan To Value ratio (CLTV) is the proportion of two or more loans secured by a property in relation to its value. The aggregate principal balances of all mortgages on a property divided by its appraised value or Purchase Price, whichever is less. It is a ratio used by lenders to determine the risk of default by prospective homebuyers when more than one loan is used. In general, lenders are willing to lend at CLTV ratios of 80% and above to borrowers with a high credit rating.

Calculate Gross Debt Service Ratio

This is a way of estimating the maximum home-related expenses you can afford to pay each month. To qualify for CMHC insurance, the total should not exceed 32% of your gross monthly household income. The gross family income is the combined gross income of all the members of a household who are 15 years old and older.

Calculate Total debt service ratio

Total Debt Service (TDS) enables you to estimate the maximum debt load you can carry each month. It should not exceed 40% of your gross monthly household income.

Calculate Household debt service ratio