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
Buyers Remorse >Real Estate Jitters
Here is a typical scenario illustrating the effects of buyer's remorse. Your home was on the market for a few weeks, and you are now feeling fortunate because an attractive offer has been presented by qualified buyers. Once the ink dried on the contract forms, however, it seemed that everything suddenly threatened to come unraveled.
Once the buyers' earnest money check cleared their account, they suddenly came up with a list of concerns that never occurred to them before the purchase agreement was signed. Their fears and demands have turned them into touchy adversaries instead of the sweet young couple looking forward to starting a family. How could the atmosphere have changed so quickly?
Buyers and sellers are both susceptible to different forms of stress reaction known in the real estate field as "Buyers' Remorse" and "Sellers' Remorse". Fortunately, neither one of these conditions is contagious to real estate agents! An important part of our job is to help our sellers and buyers through their buying or selling jitters with understanding and humor.
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Real Estate Trivia
| Q |
What famous $40+ million home has a 60-foot pool with underwater music and a 20-car garage?
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| A |
The home of Bill Gates, co-founder of Microsoft, features the latest futuristic computer technology. |
 See More Real Estate Trivia > |
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