Our Mortgage affordability tool is mainly known as All-In-One Loan affordability or Loan Eligibility tool. It is a google and excel spreadsheet based tool with lot of in-built features. This calculator can be used to calculate pre-payment / extra payment calculation and interest only payment calculation based on different payment method and more. It can also be used as Personal Mortgage Affordability Calculator, Vehicle / Car Loan Eligibility Calculator, Home Loan Affordability Calculator, Home Renovation Loan Eligibility Calculator, Two-Wheeler Loan Affordability Calculator and more. You can also use it as Payday Loan Affordability, Gold Debt Affordability Calculator, Small Business Debt Affordability Calculator, Credit Card Debt Affordability Calculator, Agriculture Loan Affordability Calculator, Consumer Durable Mortgage Affordability Calculator, Product Loan Eligibility Calculation, Education Loan Affordability Calculator and many more types of calculators.
Note: (1) Excel spreadsheet and google spread are not exactly the same features. Many of the excel based functions are not compatible with google spreadsheets. For example: changing currency symbol only work in excel sheets. Keeping this in mind, we have provided 3 different types of templates with maximum compatible with google spreadsheet. (2) You have option to apply theme only in excel sheets. (3) Click on “Enable Editing” when you see “Protected View” default error message in your excel spreadsheet.
What is Loan Affordability?
Loan affordability means maximum amount of loan you can afford to repay it. It is based on Equated Monthly Instalment (EMI) you can pay from your monthly savings. People take loan for varieties of reasons like, consolidating debts, buying property, etc. You can calculate valuation of home you can afford based on loan affordability.
Loan Affordability Formula
It is quite simple formula. You can use below formula to calculate loan affordability based on your monthly budget / savings.
Loan Affordability = ((POWER (1 + R, N) – 1) / (R * POWER (1 + R, N))) * EMI
Where R = Interest Rate, N = Number of installments, EMI = Equated Monthly Installments.
Loan Affordability Example
Let us take an example of loan affordability to understand it better. Consider that you are a borrower and you need a loan to buy a home for your family. You do not know the maximum loan you can get on your salary. Assuming that your current monthly savings are 15,000 after deducting all the expenses and existing EMIs. Suppose you need loan for 20 years (240 months) and bankers are charging 6% annual interest rate (0.005 monthly interest rate) for mortgage loans. Based on the above information let us calculate mortgage affordability based on given formula.
Debt Affordability = ((POWER (1 + Rate, Term) – 1) / (Rate * POWER (1 + Rate, Term))) * EMI
Debt Affordability = (POWER (1 + 0.005, 240) – 1) / (0.005 * POWER (1 + 0.005, 240)) * 15,000
Loan / Debt Affordability = (2.310204476 / 0.02) * 15,000 = 2,093,712
Usually loan amount is 80% of your property value. Let us now calculate the valuation of home which you can afford to buy it.
Home Affordability = (2,093,712 * 100) / 80 = 2,617,139
Now you know the loan affordability amount and valuation of home which you can afford buy it from this above calculation.
What Affects Loan Affordability?
Buying a property is always a life time goal for every human being. Bankers and Financing institutions provide a loan to a people based on your repayment capabilities. Usually 80% of the contribution is finance by lender. Remaining 20% (Down Payment) of the contribution has to be paid by borrower.
Loan affordability calculator is one of the way to calculate approximate amount. There are various factors which affects your loan eligibility amount. Some of the important factors considered are age, health, income stability, existing EMIs, credit score, lifestyle, previously rejected loan application, expenses and more. All these factors are important to find loan eligibility amount.
Importance of Loan Eligibility Calculator
Loan Affordability Calculator / Loan Eligibility Calculator is important to evaluate your capability to repay the loan. Primarily it will help you to assess approximately budget of your mortgage property. There are additional parameters to approve loan amount by bankers. The factors like credit score, stability of your income, etc. impact on your loan amount.
How to Use Loan Affordability Calculator?
It is really simple tool to use it. You just need to enter basic details of a loan for Loan Eligibility calculation. Tools is highly customization beyond your expectation. All your fully customize tool based on your requirements. View updated loan summary, amortization and chart after entering basic loan eligibility details.
Some of the features of excel sheet and google spreadsheet are explain in the video. You can go through other loan calculator videos to view full detail list of our tool features. You can download the tool from the given link and play with it. Tools hosted on our websites are 100% free to use, customize and modify for personal and internal usage. You can customize spreadsheets according to your need. These spreadsheets are not lock with protected. Any of our tool cannot be use to re-sell, sell with customized features, share as freebies or host as free. You will need a write an email for approval to conduct any such activities.
Who can Use Mortgage Affordability Calculator?
This excel spreadsheet and google sheet based tool are highly compatible to handle multiple tasks. Your Mortgage Affordability Calculator is available in various themes with friendly, colourful and attractive charts, amortization table and summary. As name suggest, it is capable to handle different types of loans. You can use this mortgage refinance calculator as below calculators.
- Personal Loan Affordability Calculator
- Auto Mortgage Affordability Calculator
- Two-Wheeler Debt Affordability Calculator
- Home Renovation Loan Affordability Calculator
- Vehicle Loan Eligibility Calculator
- Home Mortgage Affordability Calculator
- House Loan Eligibility Calculator
- Consumer Durable EMI Affordability Calculator
- Small Business Mortgage Affordability Calculator
- Payday Loan Eligibility Calculator
- Education EMI Affordability Calculator
- Credit Card Loan Affordability Calculator
- Gold Mortgage Affordability Calculator
- Agriculture Loan Eligibility Calculator
- And Many More Different Types of Loans.
Definitely you will see the advantages of All-In-One Loan Affordability Calculator in your business after using this tool. Tool is useful for Loan Eligibility Calculator and Mortgage Affordability Calculator. Explore yourself by downloading excel spreadsheet or google spreadsheet and get full control to modify and customize it according to your requirement. Hope that you will surely like it.
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