How much can I borrow for a home?
Estimate mortgage principal from a target payment, rate and term without treating the result as lender approval.
Reverse the level-payment formula to estimate principal from a payment:
principal = payment x [(1 + r)^n - 1] / [r(1 + r)^n]At a maximum principal-and-interest payment of $15,000, a 9% annual rate and 20-year term, the modeled principal is approximately $1,667,174.31.
This is not the property-price limit: a down payment may support a higher price, while insurance, taxes, fees and closing costs reduce affordability. A lender may approve less after considering income, existing debts, credit history, property valuation and policy.
Start from a resilient budget, not the maximum offered. Enter a tentative principal in the mortgage calculator and adjust it until the all-in housing cost fits.