|
|
Column A
|
Column B
|
|
Annual income before taxes
(gross):
|
$ __________
|
|
|
Divide by the number of months:
|
/12
|
|
|
Monthly gross income:
|
= $ ___________
|
= $ ___________
|
|
Many lenders will not allow you to spend
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
|
|
|
Long term monthly expense
allowance:
|
= $ ___________
|
|
|
Figure out your monthly long-term
obligations below, and subtract it from the
allowance:
|
|
|
|
Child Support
|
$ _____________
|
|
|
Auto Loans
|
+ _________
|
|
|
Credit Cards
|
+ _________
|
|
|
Association Fees
|
+ _________
|
|
|
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
and interest):
|
x.80
|
|
|
Allowable monthly principal &
interest expense:
|
$ _____________
|
|
|
Divide by MONTHLY PAYMENT PER THOUSAND
DOLLARS from table below:
|
$ _____________
|
|
|
Multiply by 1000:
|
x1000
|
|
|
Estimated Affordable Mortgage
Amount:
|
$ _____________
|
|
