| Calculates the required income needed to qualify for the selling price of a home. |
| Property Information
|
| Sale Price of Home: |
$ |
|
| Annual home insurance |
$ |
|
| Annual property tax: |
$ |
|
|
|
|
Mortgage Information
|
| Down Payment: |
$ |
|
| Interest Rate: |
|
% |
| Term in Years |
$ |
|
|
Monthly debt (car, credit cards, etc): |
$ |
|
| Front Ratio: |
|
|
| Back Ratio: |
|
|
|
Estimate Taxes and Insurance* |
|
|
|
|
| |
|
Your Results |
|
Total monthly loan payment: |
$1,316.39 |
|
( PI ($954) + Hazard Insurance ($125)
+ Property Tax ($238)) |
|
Total monthly debt payment: |
$2,316.39 |
|
( Loan Payment
($1,316) +
Debt Payments ($1,000.00) ) |
| Total monthly PMI payment: |
$56.33 |
|
(0.52% a year on a
$130,000.00 loan, since your downpayment was
13.33%)
|
| 28% Qualifying income: |
$58,831.17 |
| 36% Qualifying income: |
$79,090.91 |
| Minimum Qualifying income: |
$79,090.91
|
|
Explanation |
|
PMI appears above if your down payment is less than
20% of your home value. That means you must pay an extra .32%
to .90% a year until you break the 20% criteria. PMI is also add
that into the income requirement.
The Front End Ratio (28%) income is based
on PITI (Principal + Interest + Tax + Insurance) or more specifically,
the mortgage principal plus interest amount plus your monthly
property tax and home insurance the lender typically holds in
an escrow account for you. This monthly amount is listed above
as Total monthly lender payment.
The Back End Ratio (36%) income is based
on the PITI (Principal + Interest + Monthly Property Tax + Monthly
Home Insurance + Monthly Debt). This total amount is the sum
described above as Total monthly debt payment.
As long as your total income (salary + interest income + dividend income) meets ONE of the two incomes
you will probably qualify, and if you meet both then getting a loan based on income is good.. |
|
The results of this calculation are not binding and in no way constitute an offer to extend credit.
Calculator Disclaimer |
