Mortgage Worksheet
Step 1. Figure you total monthly pretax income Salary/wages of buyers Other income (child support, alimony, etc.) Total annual income Divide total income by 12 months = Total Monthly Pretax Income Step 2. Figure your total monthly debt Car payment Student loan payment Child support/alimony Credit cards (minimum monthly payment) Other long term debts =Total Monthly Debt Step 3. Maximum monthly mortgage payment (28% of Pretax income, 29% FHA) includes principle, interest, tax, mortgage insurance) Total monthly pretax income Multiply by .28 (FHA mortgage .29) = maximum monthly mortgage payment Step 4. Maximum monthly debt including mortgage payment (36%, 41% FHA and VA Total monthly pretax income Multiply by .36 (FHA and VA mortgages .41) Maximum monthly allowable debt including mortgage $ $ $ =$ $ $ $ $ $ $
$ x.28 or x.29 =$
$ x.36 or x.41 =$
Maximum monthly mortgage payment: total monthly payment (principle, interest, taxes, and mortgage insurance) allowable equals 28% of pretax income, 29% for FHA mortgages. Maximum monthly debt including mortgage payment: total allowable monthly debt (includes mortgage payment, car loan, student loan, child support, alimony, minimum credit card payments, and other long term debt) equals 36% of pretax income, 41% for FHA and VA mortgages.