See if Your Income is Sufficient to Qualify

The amount that you can afford to borrow depends on Desired Mortgage for New Home, Mortgage Length, Interest, and Annual Tax. The primary thing considered by the lenders is how much you need or the desired mortgage.

Required Salary = 28% of the sum of the monthly mortgage and monthly tax payments

Required Salary = 35% of the sum of the monthly mortgage, monthly tax and other monthly debt payments.

The lenders judge the amount you can afford to borrow on the basis of your monthly income and monthly liabilities. The liabilities include your housing loan expenses, auto loan, credit card and other payments. If you have more of income and less liabilities then the amount that can be borrowed will be more while if your liabilities exceed your income then the amount to be borrowed will be less. The interest rates on the amount borrowed will depend on the rate prevailing as well as on the term of the loan. Use the following calculator to determine the Required Salary and the maximum loan amount for which you may qualify.

DISCLAIMER: The prequalification figures above are based upon conventional program guidelines. Other loan programs are available. Calculations by this tool are believed to be accurate, yet are not guaranteed. Further review is necessary to obtain an exact qualification. If you have less than 20% equity in your home, a monthly mortgage insurance payment may be required.