Use this calculator to estimate costs for purchasing land and potentially building on it, aiming for total housing costs to be around 25% of your income. Fill in the fields below and click "Calculate" to see results, including out-of-pocket costs, monthly outlook, and affordability options.
- Lot Cost ($): Enter the price of the land or lot you’re considering (e.g., 50000). This is the base cost for the purchase.
- Annual Income ($): Input your total yearly gross income (before taxes) from all sources (e.g., 75000). Helps gauge affordability within the 25% income rule.
- Down Payment ($ or %): Specify your down payment as a dollar amount (e.g., 10000) or percentage of the lot cost (e.g., 20%). Reduces the loan amount and impacts payments.
- ZIP Code: Enter a 5-digit ZIP code (e.g., 97401) to fetch local property tax and construction cost estimates via API. Affects total costs.
- Loan Term (Years): Choose the length of your loan, typically 15 or 30 years. Shorter terms mean higher payments but less interest over time.
- Interest Rate (%): Displays the current average rate from Freddie Mac PMMS (updated weekly). Override with a custom rate (e.g., 5.5 for 5.5%) if desired.
- Land Purpose: Select the type of land: "Raw Land" (undeveloped), "Improved Land" (with utilities), or "Construction" (for building). Affects cost estimates.
- Other Debts ($): (Optional) Enter total monthly payments for other debts (e.g., 500 for car loans, credit cards). Helps assess overall financial load.
- Credit Score: (Optional) Input your credit score (e.g., 720) to refine affordability estimates. Higher scores may improve loan terms.
- Add Structure: Check this box to include costs for building a structure. Additional fields appear based on your selection.