Welcome > Resources > Mortgage Calculators > Your Income ...

 

How Much Should Your Income Be?

What income is required to qualify for a mortgage? That largely depends on your monthly debt payments and the current interest rate. This calculator collects these important variables and determines your required income to qualify for your desired mortgage amount.

Definitions

Desired mortgage amount

The total loan amount you are looking to qualify for.

Monthly housing expenses

Your monthly houses expenses from the housing expenses worksheet. The items entered as housing expenses make up the taxes and insurance portion of your monthly PITI payment.

Monthly liabilities

Your monthly liabilities from the liabilities worksheet. Your monthly liabilities are used to calculate your maximum PITI.

Monthly housing payment (PITI)

This is your total Principal, Interest, Tax and Insurance (PITI) payment per month. This includes your principal, interest, real estate taxes, hazard insurance, association dues or fees and principal mortgage insurance (PMI). Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

1. Monthly Income X 28% = monthly PITI
2. Monthly Income X 36% - Other loan payments = monthly PITI

Maximum principal and interest (PI)

This is your maximum monthly principal and interest payment. It is calculated by subtracting your monthly taxes and insurance from your monthly PITI payment. This calculator uses your maximum PI payment to determine the mortgage amount that you could qualify for.

Start interest rates at

The current interest rate you could receive on your mortgage. This is used as the starting point for displaying a range of interest rates and the resulting mortgage amount.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

The mortgage calculators are provided by KJE Computer Solutions, LLC and made available to NUMBER1EXPERT as self-help tools for your independent use and are not intended to provide investment advice. We can't guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Closing or Settlement >Escrow Rules The lender is allowed to accumulate a borrower's payments up to a two-month advance cushion at the end of a year. But if a surplus develops beyond this amount, the borrower is now entitled to an immediate refund unless the surplus is less than $50. These rules apply to new loans. See All Tips In The "Closing or Settlement" Category > See Complete Library Of Hundreds Of Tips In 30+ Categories >

Q  Which law allows a person to give another individual up to $10,000 a year without any tax consequences? A  The Federal Gift Tax Law allows both parents to give a child (or anyone) $10,000 each in one year. See More Real Estate Trivia >

Barbara j. Berkowitz Coldwell Banker Residential Brokerage 700 Hopmeadow Street SIMSBURY, CT 06070 Phone: 860-653-7134 VOICE MAIL: 860-493-1292 CELL PHONE: 860-490-3776 FAX: 860-658-6304 e fax: 1-866-219-6121 Email: barbaraberkowitz@NUMBER1EXPERT.com EMAIL: bberkowitz@cox.net LET ME MAKE YOUR DREAM A REALITY! I PROMISE TO PUT YOUR NEEDS ABOVE ALL ELSE TO HELP MAKE THIS THE MOST ENJOYABLE EXPERIENCE POSSIBLE.

www.BarbaraBerkowitz.com is brought to you by Barbara Berkowitz
NUMBER1EXPERT in real estate for Granby, Simsbury and Suffield, Connecticut

Read Barbara Berkowitz's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge

NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.