Mortgage is a convenient option for many aspiring house-owners looking to buy their dream house. However before taking the plunge, you can make a few simple calculations to ensure how much mortgage you can afford. Start off with a calculation of all your monthly expenses. Divide all your current expenses into car expenses, maintenance expenses, loan payments, bills, entertainment, dining out, etc. Also, add to these expenses insurance costs, house maintenance expenses and property taxes. Determine your debt-to-income ratio. It is the sum of your mortgage payment and other loan and credit card debts divided by your gross monthly income. This ratio is taken into account by mortgage lenders to determine your credit score. Most lenders consider a ratio of 40 to 45 percent to be decent enough to lend a loan. Now let’s take a look at how much monthly mortgage payment can you afford to pay. Calculate 40 percent of your gross monthly income, subtract your monthly non-mortgage debt payments from that 40 percent. The remainder is you’re the amount you can afford to pay towards your monthly mortgage payment. Alternatively, you may use online mortgage calculators for arriving at your mortgage amount. You may also consult professional lenders to find out an ideal mortgage amount.