 |
|
In addition
to having the cash for the down payment, closing costs and good credit history,
the mortgage lender will want your house payment and other debts to conform
to accepted qualifying ratios. While 28%/36% are the most common, some lenders
allow 33%/38% (the 1st number is for the housing expense, and the 2nd number
is for total long-term expenses).
|
Column A |
Column B |
|
Annual income before taxes (gross): |
$________ |
|
|
Divide by number of months: |
÷ 12 |
|
|
Monthly gross income: |
=________ |
=________ |
Maximum monthly housing expense allowance:
Lender's allowance for monthly gross income on housing
expense (either 28% or 33%)
- Maximum monthly housing expense allowance |
|
X_______
=________ |
Maximum total long-term monthly expense allowance:
Lender's allowance for long-term debt
(either 36% or 38%)
- Long-term monthly expense allowance: |
|
X________
=________ |
|
Figure out your monthly long-term obligations below, and subtract if from the allowance: |
- auto, bank, installment loans:
- credit cards, revolving debt:
- real estate mortgage, association fees:
- other: (alimony, child support):
- other:
- Total long-term obligations:
|
$________
+________
+________
+________
+________
=________
|
|
| Monthly housing expense allowance: |
=________ |
|
| Record the smaller figure from Column
A or B: |
$_______ |
Estimating about 20% for taxes and insurance, leaving
80%
for payment of mortgage (principal & interest): |
x .80 |
| Allowable monthly principal & interest expense: |
+_______ |
Divide by MONTHLY PAYMENT PER THOUSAND DOLLARS
from table |
÷_______ |
| |
=_______ |
| Multiply by 1000: |
x 1000 |
| Estimated Affordable Mortgage Amount |
$_______ |
|
|
|
Isabella
Scott
