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.
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