The Franich Team is one of The Top Selling Real Estate Experts™
Find Out More >
|
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:
- Monthly Income X 28% = monthly PITI
- 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.
Real Estate Tips
Closing or Settlement >Closing Questions
Because of the complexity of a real estate transaction, questions and concerns arise frequently for those who are buying or selling a home. Most people experience a degree of stress at the closing of the sales transaction. Both parties are probably feeling nervous and vulnerable as they sign the papers, and may even be fighting off an attack of buyer's or seller's remorse.
Even though you may be inclined to just sign the papers, it is a good idea to check the paperwork and ask any questions that come to mind. If you are signing a mortgage or deed of trust, be sure to review the document carefully. Check the spelling of your name, the property address and all of the inserted items for accuracy. Since much of the paperwork is prepared on short notice, mistakes are occasionally made. They are usually easier to fix while you are still at the title office, so don't be shy about asking questions before you sign on the dotted line.
|
Real Estate Trivia
| Q |
What is the mysterious American island whose private owners are intent on preserving the ways of early island life?
|
| A |
The Robinson Family, owners of Niihau, Hawaii, have done everything in their power to preserve traditional ways. |
 See More Real Estate Trivia > |
|
NUMBER1EXPERT®
© Best Image Marketing and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.
|
- NUMBER1EXPERT 
