|
Here's how to determine the amount of
a mortgage loan you're qualified to obtain. |
| 1. Determine your
gross monthly income |
__________(A) |
| 2. Multiply x
.40 |
x.40 |
| 3. This is your
allowable total monthly debt payments. |
__________(B) |
| 4. Total your
current monthly debt payments. |
|
|
Auto Loan Payments
|
__________ |
|
|
Other Loan Payments
|
__________ |
|
|
Credit Cards, minimum payment
|
__________ |
|
|
Child Support
|
__________ |
|
Total Monthly Debt Payments
|
__________(C) |
| 5. Subtract total
monthly debt payments from allowable total monthly debt payments
(B-C). This is your Maximum Allowable Monthly Housing Payment. |
__________(D) |
| 6. Multiply Gross
Monthly Income (A) x .33 |
__________(E) |
| 7. Enter the lesser
of the Line D or Line E. This is your Allowable Housing Payment. |
__________(F) |
8. Your Housing
Payment consists of the following: Principle & Interest (P&I),
Property Taxes, Homeowner's Insurance, Private Mortgage Insurance,
if required, and Association Fee (if Condo or Townhome).
Subtract: |
|
| Estimated Monthly
Property Tax (Annual Property Taxes /12) |
__________(G) |
| Estimated Homeowner's
Insurance (Annual Homeowner's Insurance/ 12) |
__________(H) |
| Monthly Association
Fee (Condo or Townhome) |
__________(I) |
| Monthly Amount
Available for P&I and PMI. Subtract G, H, I from F. |
__________(J) |
| Find Factor from
Following
Schedule |
__________(K) |
| Calculate Mortgage
Amount (Line J / Line K x 1,000) = Mortgage Amount |
__________(L) |
| Add Down Payment |
__________(M) |
| Potential Purchase Price
(L + M) |
_____________ |
|
*Borrowers with a good credit history
con often exceed the ratios use above and therefore, qualify
for a larger mortgage loan. To obtain the most accurate analysis
of your financial data, contact a Loan Officer.
|
