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Mortgage Qualification Calculator 

 
 

To figure out if you can afford a new home or not, complete this calculator.  It is a quick way to determine your total financial circumstances and outlook. Both your mortgage company and your lender will use these mortgage ratios to determine both your income and your debt. This calculator calculates three ratios called the Housing Ratio , the Loan-to-Value (LTV) Ratio , and the Debt Ratio .

Instructions:
Note, all fields are required, enter zero (0) for items which do not apply.

Mortgage Equity Calculator
  Your Values
Number of Payments (360=30yrs, 180=15yrs)
Interest Rate
Purchase Price
Amount of Mortgage
GROSS Monthly Income (combine if married)
Real Estate Taxes (1 month)
Homeowner's Insurance (1 month)
Mortgage Insurance
Association Dues
Car Payments (loan and/or lease)
Alimony/Child Support
Credit Card Payments
Other Loan Payments

 

Output Results
Monthly Payment Monthly
Housing Expense		 Monthly Bills LTV-Ratio Housing Ratio Debt Ratio
$ $ $ % % %
 

 

In the general terms, banks look at the ratios in this way. These are averages only, each bank may differ on the exact ratio's they use to qualify a mortgage.

LTV (Loan to Value): 80% or less, good. 81% or higher and generally you must have mortgage (PMI) Insurance.

Housing Ratio: 28% = conventional mortgage / 29% to 31% =  FHA mortgage / 32%+ = sub prime mortgage (higher rate)

Debt Ratio: 38% = Conventional mortgage / 39% to 41% = FHA mortgage / 42%+ sub prime mortgage (higher rate

 

 

Back Home Up Next

Securities offered through Sigma Financial Corporation. A registered broker/dealer. Member FINRA & SIPC.
Planning Services offered through Sigma Planning Corporation, a registered investment advisor.

Any information contained on this site does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser licensed in your state.

We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

Asset allocation, diversification and rebalancing do not assure a profit or protect against loss in declining markets. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results.

Investment products, insurance and annuity products:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity
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Copyright © 2009 R & D Financial Services Inc. 2701 Troy Center Drive, STE 255, Troy Michigan 48084
Last modified: 05/11/10