Findlay Real
Estate - Pre-Qualify
Form
What Can You Afford?
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printable
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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 loan ratios differ.
|
Column A
|
Column B
|
||
| Annual income before taxes (gross) |
$_______________
|
||
| Divide by number of months |
(/)12
|
||
| Monthly gross income |
=_______________
|
=_______________
|
|
| more than 28% of your monthly gross income on housing expense: (column B) |
x .28
|
||
| Maximum monthly housing expense allowance (column B) |
=_______________
|
||
| Many lenders allow 36% of monthly gross income for long-term debt: |
x .36
|
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| Long-term monthly expense allowance |
=_______________
|
||
| Figure out your monthly long-term obligations below, and | |||
| subtract it from the allowance: | |||
| a: child support | $_______________ | ||
| b: auto loans | +_______________ | ||
| c: credit cards | +_______________ | ||
| d: association fees | +_______________ | ||
| e: other | +_______________ | ||
| Total Long-term obligations | =_______________ | ||
| Monthly housing expense allowance: |
=_______________
|
||
| Record the smaller figure in Column A or B: |
$_______________
|
||
| Estimating about 20% for taxes and insurance, leaving 80% for payment of mortgage (principal & interest) |
x .80
|
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| Allowable monthly principal & interest expense: |
+_______________
|
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| Divide by MONTHLY PAYMENT PER THOUSAND DOLLARS from table |
(/)_______________
|
||
|
=_______________
|
|||
| Multiply by 1000 |
x 1000
|
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| Estimated Affordable Mortgage Amount |
$_______________
|
| Rate | 15 yr. | 30 yr. | Rate | 15 yr. | 30 yr. | Rate | 15 yr. | 30 yr. | Rate | 15 yr. | 30 yr. |
| 5.0% | 7.91 | 5.37 | 6.0% | 8.44 | 6.16 | 7.75% | 9.41 | 7.16 | 9.5% | 10.44 | 8.41 |
| 5.25% | 8.04 | 5.52 | 6.25% | 8.58 | 6.16 | 8.0% | 9.56 | 7.34 | 9.75% | 10.60 | 8.60 |
| 5.5% | 8.17 | 5.68 | 6.5% | 8.72 | 6.33 | 8.25% | 9.70 | 7.51 | 10.0% | 10.75 | 8.78 |
| 5.75% | 8.30 | 5.84 | 6.75% | 8.85 | 6.49 | 8.5% | 9.85 | 7.69 | 10.25% | 10.91 | 8.97 |
| 7.0% | 8.99 | 6.65 | 8.75% | 9.99 | 7.87 | 10.5% | 11.06 | 9.15 | |||
| 7.25% | 9.13 | 6.82 | 9.0% | 10.14 | 8.05 | 10.75% | 11.22 | 9.34 |