Home Buyer Worksheet
Use the worksheet below to help you estimate the maximum loan you will qualify for.
Also, see the House Hunting Checklist
to print and take along with you,
and the table of Example Monthly
Interest and Principal Payments
...just a few tools to make your
experience of finding and buying a home a little easier.
| Sample Figures | Your Figures | ||||
|---|---|---|---|---|---|
| 1. | Annual Household gross income (from last years tax returns) |
$27,000 | $40,000 | $55,000 | |
| 2. | Monthly gross income (divide line 1 by 12) | 2,250 | 3,333 | 4,585 | |
| 3. | Percent of income to be spent on long-term debt, including housing (use .36) | x .36 | x .36 | x .36 | |
| 4. | Multiply line 2 by line 3 (Amount available for long-term debt, including housing) | 810 | 1,200 | 1,651 | |
| 5. | Estimated monthly debt repayment (installment loans, charge cards, alimony, child support, etc.) | 150 | 200 | 300 | |
| 6. | Estimated monthly expenses for property taxes and insurance | 75 | 95 | 115 | |
| 7. | Add lines 5 and 6 | 340 | 485 | 660 | |
| 8. | Affordable monthly mortgage payment (subtract line 7 from line 4)(To principal and interest add this line. The sum plus taxes and insurance should not exceed 28 percent of gross monthly income.) | 470 | 715 | 991 | |
| 9. | Monthly payment per $1,000 of mortgage loan (from monthly payment chart). In the example, we've used an 8.5 percent interest rate and a 30-year loan ($7.69 per $1,000). | 7.69 | 7.69 | 7.69 | |
| 10. | Divide line 8 by line 9 | 61.11 | 92.97 | 128.86 | |
| 11. | Multiply line 10 by $1,000 (size of mortgage loan). Round to lowest $50. | 61,100 | 92,950 | 128,850 | |
| 12. | 1 minus the percent down payment (the example is a 5 percent down payment: (1-.05=.95). | .95 | .95 | .95 | |
| 13. | Affordable home price (divide line 11 by line 12). | 64,300 | 97,850 | 136,650 | |
Just call one of our Professionals for a quick and easy pre-qualification.
