What Do I Need To Make?

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How Much Do I Need to Make?

Loan Amount * The principal amount you intend to borrow from a lender to finance your home purchase, excluding the down payment. This figure drives your monthly mortgage payment, which includes principal repayment and interest, and influences additional costs like PMI if applicable.

DTI (%) * Debt-to-Income Ratio (DTI) represents the percentage of your gross monthly income allocated to debt payments, including housing and existing obligations. Lenders typically prefer a DTI below 45%, though some allow up to 60% for qualified borrowers.

Other Debt * Monthly payments for debts reported on your credit profile, such as auto loans, credit cards, student loans, or personal loans. Exclude non-debt expenses like utilities or insurance, as lenders focus on committed obligations.

Rate (%) * The annual interest rate applied to your mortgage loan, expressed as a percentage. This rate significantly affects your monthly payment and total loan cost, typically ranging from 3% to 8% depending on market conditions and creditworthiness.

Loan Term * The duration in years over which you’ll repay the mortgage loan. Common terms include 30, 20, 15, 10, or 5 years, with shorter terms increasing monthly payments but reducing total interest paid over time.

Monthly Housing Costs

Taxes * Monthly property taxes assessed by local governments based on your home’s value and location. These taxes fund public services and are a key component of your total housing expenses, impacting loan affordability.

Insurance * Monthly homeowner’s insurance premium, which protects against property damage or liability. Lenders require this coverage, and its cost varies by location, home value, and coverage level, affecting your debt-to-income ratio.

PMI * Private Mortgage Insurance (PMI) is a monthly fee required by lenders if your down payment is less than 20% of the home price. It protects the lender in case of default and increases your monthly housing costs until sufficient equity is built.

HOA * Homeowners Association (HOA) fees cover community maintenance, amenities, and shared services in certain properties. These fees are separate from your mortgage payment but are included in your debt-to-income ratio for loan approval purposes.

Required Gross Income

Monthly

Annual

Mtg. Payment

Housing / Total Debt (%) * Housing % reflects the portion of your income spent on mortgage, taxes, insurance, and HOA fees. Total % includes all debts (housing plus other obligations), critical metrics lenders use to assess repayment ability.

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Need less income? Try lowering your loan amount or DTI.