Prequalification Calculator

Prequalification Calculator

User Rating : 1 Stars 2 Stars 3 Stars 4 Stars 5 Stars (496 votes, average: 2.64 out of 5)

Want to prequalify for a mortgage? Our mortgage pre-qualification calculator shows how lenders see you. See how much you can afford based on yearly income, debts & other factors. Our mortgage pre-qualification calculator will indicate how much you can borrow with a home loan by analyzing your income, assets, and current mortgage interest rates available to you.

No matching records found

How to use the Prequalification calculator

Enter Your Financial Information

  • Gross Monthly Pay: Your household income before taxes and deductions.
  • Loan Term: The number of years you'll have to repay your mortgage.
  • Annual Percentage Rate (APR): Enter the estimated mortgage interest rate (see a list of current mortgage interest rates).
  • Local Property Tax Rate: You can obtain this information from the local property tax collector's office or website. Enter the percentage rate (not the dollar amount) in the calculator.
  • Money Available for Down Payment and Closing Costs: The amount of cash you have to pay toward these expenses.
  • Other Monthly Obligations: Include recurring installment payments, including credit cards, auto payments, personal and education loans.

Click the "calculate" button, and check the results.

Home Purchase or Refinance: Can You Prequalify?

  • Home Value / Purchase Price: The maximum amount you prequalify for, based on the information provided.
  • Total Cash Paid at Closing: The amount you're contributing for closing costs and a down payment.
  • Cash Applied to Closing Costs: An estimate of closing costs.
  • Cash Applied to Down Payment: What's left of your cash contribution is used for a down payment.


Monthly Housing Expenses

  • Mortgage Payment: The amount of the principal and interest payment based on the amount you qualify to borrow and the interest rate you've entered.
  • Property Taxes: The estimated monthly amount of property taxes. If you're putting less than 20% down, this amount will be added to your mortgage payment.
  • Mortgage Insurance: A down payment of less than 20% of the purchase price will require mortgage insurance, which will be added to your mortgage payment.
  • Hazard Insurance: As with taxes and mortgage insurance, this will be added to your mortgage payment if you borrow more than 80% of your home's purchase price.
  • Total Housing Expense: This amount generally shouldn't exceed 28% of your gross income if you want to prequalify.
  • Other Monthly Expenses: The amount you entered for other monthly payment obligations.
  • Total Monthly Expenses: The sum of your total monthly housing payment and other monthly expenses. It generally exceed 36% of your gross monthly income for pre-qualification purposes.

These figures are guidelines. Those with spotless credit, lots of assets, or a very stable job history might qualify for more financing. Conversely, those with credit problems or minimal assets may qualify for less. We recommend that you speak directly with lenders to determine what is right for your situation. You can request up to four free quotes from competing lenders here, with no cost and absolutely no obligation to you.

You can also compare savings on loan terms, rates and amounts using the amortization calculator, and determine potential benefits of refinancing using the refinance calculator


38 Responses to "Prequalification Calculator"
  1. Amanda 17, Jun, 2008

    What do we qualify for? - - - - EDITOR'S REPLY: The Mortgage Industry has a process that lenders refer to as pre-qualification. There may be a little variation on the calculation from lender to lender, but they are all very similar. Prequalification is basically a sanity check to see if your income and your debt-to-income ratio is appropriate for the size of loan you seek. If this calculator says you prequalify for a given amount, you should be able to ask a lender to provide you with a pre-qualification letter stating that you are pre-qualified for that amount. This can be useful, as some sellers will only work with people who are pre-qualified. In this way, they can be sure that a lender has at least looked at your income and your debt, and they believe you have a reasonable chance of being approved for the loan if you apply for it. Instead of going into the mortgage banker or mortgage broker's office "blind," the calculator allows to to first get an idea how their calculation works, and what amount they are likely to pre-qualify you for. I hope you find this calculator to be helpful.

  2. jimmy 16, Jun, 2008


  3. Mac 27, May, 2008

    thank you...

  4. toganges 27, May, 2008


  5. Rodger C. 25, May, 2008

    Excellent! I just put on my site to help sell my home. Perfect addition!! rrvhome.com - - - - EDITOR'S COMMENTS: Hey, I just took a look at your site. That's a nice looking home! I'm sure you'll have no problem finding a buyer to offer the right price. Adding a pre-qualification calculator to your site was a good idea. It should help by allowing people who can't afford your home to realize that right away so that they don't waste their time (and yours). Happy selling!

  6. nader 17, Apr, 2008


  7. jericho 09, Apr, 2008


  8. jesse 09, Apr, 2008



Leave a Comment

Get Free Mortgage Quotes

Property State:
Property Type:
Credit Rating:

Recent Mortgage News

Today's Best Mortgage Rates




Last Week

5/1 ARM

2.64 %


15 Year Fixed

2.50 %


30 Year Fixed

4.62 %


Put the Mortgage Loan Prequalification Calculator on your website for Free!

Simply copy and paste the code above into the HTML code of your website and your visitors will be able to use the same calculator that appears on this page.

This is a free service for consumers, researchers, and real estate and mortgage professionals. Give your readers the added value of our easy to use mortgage calculators for free!

Please note that modifying the code above will disable the calculator.

Additional color options are available.
Customize your mortgage calculators here.

Use Our Calculators On Your Sites

Enhance the experience of your visitors by using our free calculators and content on your blog or website. Go >>