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SIMPLE way to calculate how much mortgage you qualify for!

Updated: Jan 7, 2023

Here is some information if you want to get a rough estimate what you qualify for:

Take into consideration this is general so that it kind of works for VA, FHA, and Conventional loans even though different loan programs will have different requirements this will give most people a general idea of what they've qualify for and how to calculate.

Your gross income divided by your current debts plus the mortgage is what lenders call Debt to income ratio and let's just call it 50% or less

Let’s say you make $8,000 a month your total payments credit cards student loans car payments all the other stuff that shows up on your credit report plus the new mortgage can't exceed 50% of your gross income so gross income.

So for example: You make 8ka month 50% of that is four thousand you've got sixteen hundred in these other payments you're gonna qualify for a mortgage up to 2400 or close too.

It’s important to consider in this if people say oh well I did some rough calculations on my own and I could buy a house up to six hundred thousand take into consideration that based on how much you're putting down you're gonna have principal interest taxes homeowners insurance and mortgage insurance a lot of folks that are putting three percent down or three and a half percent don't factor in that $200 a month in mortgage insurance or whatever that number is the total cost HOA dues all of that with your mortgage payment plus your current debts can exceed 50 percent of your gross income and that's the basics of it.

Click on link for mortgage calculator MORTGAGE CALCULATOR | Ray Maestas Fremont Realtor ( to see for yourself, See pic for example:

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