Mortgage Payment Stress Test Tool

Mortgage Payment Stress Test Tool (USA Focus)

Base Mortgage, Income & Expenses

Loan Details:

Loan Principal Amount ($):

Current/Base Annual Interest Rate (%):

Loan Term (Years):

Monthly Housing Costs (Estimates):

Annual Property Taxes ($):

Annual Homeowners Insurance ($):

Monthly HOA Dues ($) (If applicable):

Income & Other Debts:

Gross Monthly Household Income ($):

Total Other Monthly Debt Payments ($) (e.g., car, student, credit cards):

Stress Test Parameters

Interest Rate Stress:

Enter potential increases to your base interest rate (as percentage points).

Rate Increase 1 (+% pts):

Rate Increase 2 (+% pts) (Optional):

Rate Increase 3 (+% pts) (Optional):

Income Stress:

Potential Income Decrease (%):

Property Cost Stress (Additional Annual Increases):

Additional Annual Property Taxes ($):

Additional Annual Home Insurance ($):

Other Essential Expense Stress:

Increase in Other Essential Monthly Expenses ($):

Mortgage Stress Test Analysis

Please complete your inputs on the previous tabs and click "Run Stress Test" to see the analysis.

Understanding Your Stress Test Results (USA Context):

This tool estimates how changes in interest rates, income, or essential expenses could impact your monthly mortgage affordability (PITI) and Debt-to-Income (DTI) ratios.
PITI: Principal, Interest, Property Taxes, and Homeowners Insurance (plus HOA if applicable).
Front-End DTI (Housing DTI): Your total PITI as a percentage of your Gross Monthly Income. Lenders in the USA often prefer this below 28-31%.
Back-End DTI (Total DTI): Your total monthly debt obligations (PITI + other debts) as a percentage of Gross Monthly Income. Lenders often prefer this below 36-43% (though some programs allow up to 45-50%).
Disposable Income: Gross Monthly Income minus PITI and other specified debts. Stress scenarios show how this buffer could shrink.
Higher DTI ratios under stress indicate increased financial strain and reduced ability to handle unexpected expenses.

Disclaimer: These are simplified estimates based on your inputs. Actual market conditions, lender requirements, and personal financial situations can vary significantly. This tool does not provide financial advice, predict future rates or income, or guarantee loan affordability. Always consider your overall financial stability and emergency savings.