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Responsive input grid: 3 / 2 / 1 columnsProvide best estimates. Include housing and recurring debts for a realistic affordability view.
Example Data Table
These are sample scenarios to help you sanity-check your inputs.
| Scenario | Income | Housing | Other Debt | Score | Amount | Term | APR | DTI | Payment | Precheck Tier |
|---|---|---|---|---|---|---|---|---|---|---|
| Stable profile | $6,000 | $1,400 | $350 | 740 | $15,000 | 36 | 12% | 29.2% | $498 | Promising |
| Higher DTI | $4,200 | $1,650 | $650 | 680 | $12,000 | 48 | 18% | 54.8% | $352 | Borderline |
| Thin margin | $3,500 | $1,250 | $500 | 630 | $8,000 | 36 | 24% | 50.0% | $314 | High Risk |
Formula Used
- Debt-to-income (DTI): (housing + other monthly debt) / gross monthly income
- Monthly payment: P × [r(1+r)n] / [(1+r)n − 1], where r is monthly rate and n is months.
- Payment capacity: (income × target ratio) − (housing + other debt)
- Max affordable loan: Solved numerically so payment ≤ capacity at selected term and APR.
- Precheck score: Weighted points from credit tier, DTI, utilization, history, and margin.
How to Use This Calculator
- Enter gross monthly income and your housing cost.
- Add recurring minimum payments for all other debts.
- Provide your estimated credit score and utilization.
- Pick a realistic loan term and a rough APR estimate.
- Run the precheck, then review DTI, payment, and flags.
- Adjust amount, term, or debts to improve affordability.
- Download the CSV or PDF for quick sharing and notes.
Precheck metrics and lender thresholds
A precheck estimates whether a requested payment fits inside your budget. This tool calculates front‑end and back‑end debt‑to‑income ratios using monthly income, housing cost, and other debt minimums. Many lenders prefer back‑end DTI near 36% to 43%, but acceptable levels vary by product, documentation, and overall credit profile.
Payment and term trade-offs
Using the selected amount, term, and APR estimate, the calculator applies the standard amortization payment formula to project a monthly payment and total interest. For example, keeping the amount constant while extending the term often reduces the payment but increases total interest. That trade‑off is visualized in the payment‑by‑term graph so you can compare affordability versus long‑run cost. A small APR change can materially shift payment: a 2-point rate increase on a 36-month loan may add tens of dollars per month, depending on principal. Re-run scenarios to see the impact before committing.
Risk signals that influence pricing
Risk signals matter even when income looks strong. Higher credit utilization, recent late payments, and short employment history can tighten pricing or reduce approval odds. The precheck score blends credit tier, DTI, utilization, and stability indicators into a 0–100 snapshot. Scores above 80 typically indicate stronger positioning, while results below 50 suggest key constraints to resolve before applying.
Capacity estimates for safer borrowing
Affordability is evaluated with a conservative payment capacity estimate: (income × target ratio) minus existing obligations. The target ratio is adjusted for credit strength and local risk level to avoid overstating capacity. The tool also estimates a maximum affordable loan amount by solving for principal at the chosen term and APR, helping you right‑size the request without repeated trial entries.
Turning results into next steps
Use the output to build an action plan. If DTI is high, consider paying down revolving balances, refinancing smaller debts, or choosing a longer term. If utilization exceeds 50%, lowering balances can improve both score and rate offers. When comparing lenders, note origination fees reduce net proceeds and raise effective cost, so evaluate payment, fees, and total interest together.
FAQs
What does the precheck score represent?
It is a weighted snapshot from credit tier, DTI, utilization, stability, and recent delinquencies. It helps prioritize improvements, but lenders also verify documentation, bureau data, and internal policy rules.
Is a “Likely” result guaranteed approval?
No. The tool estimates fit from your inputs. Lenders may use different income definitions, credit models, or maximum DTI limits, and they can change offers after verifying statements, pay stubs, and credit reports.
How should I choose an APR estimate?
Start with your credit tier and recent market quotes, then test a range. If you are unsure, run scenarios at a low, mid, and high APR to see how sensitive payment and interest become.
Why does the origination fee matter?
Origination fees reduce the cash you receive while keeping the loan balance the same. That lowers net proceeds and raises your effective cost. Always compare payment, fee amount, and total interest together.
How does a co-borrower affect results here?
Income is added to improve DTI, and an optional blended credit score can modestly improve the precheck score. Real lenders may weigh the lower score more heavily, so review both borrowers’ reports.
What are the fastest ways to improve my precheck?
Reduce revolving utilization, fix recent late payments, and lower monthly debt minimums. Requesting a smaller amount or longer term can also improve affordability. Re-run the tool after each change to quantify progress.
Notes and Disclaimers
- This tool provides estimates, not lending decisions.
- Rates, fees, and approvals depend on lender policies and verification.
- For accuracy, use up-to-date income, debt minimums, and credit details.