Buyer's Guide - Page 11

Mortgage Worksheet 1. Calculate Your Total Monthly Pretax Income Your Annual Salary/wages _________________________ Other Annual Income (Dividends, child support, alimony, etc.) _________________________ Total Annual Income _________________________ Divide Total Annual Income by 12 months ______________________ /12 Total Monthly Pretax Income _________________________ 2. Calculate Your Total Monthly Debt Car Payment(s) _________________________ Student Loan Payment _________________________ Child Support/Allimony _________________________ Credit Cards _________________________ Other Long-term Debts _________________________ Total Monthly Debt _________________________ Maximum Monthly Debt Including Mortgage Payment Total allowable monthly debt should equal approximately 36% of pretax income, 41% for FHA and VA mortgages. 3. Maximum Monthly Mortgage Payment (Includes prinicpal, interest, tax and mortgage insurance at 28% of pretax income, 29% for FHA) Total Monthly Pretax Income from Step 1 _________________________ Multiply by .28 (FHA Mortgages .29) _______________ x .28 or .29 Maximum Monthly Mortgage Payment _________________________ (36%, 41% FHA & VA) _________________________ HOME BUYER’S GUIDE www.HoulihanOmalley.com Maximum Monthly Mortgage Payment Total monthly mortgage payment (principal, interest, taxes and mortgage insurance) should equal no more than 28% of pretax income, 29% for FHA mortgages. 914.337.7888 11