# How Much Mortgage Based On Income

What percentage of your income can you afford for mortgage payments? Do you use gross monthly income or take-home pay? Learn how much house you can afford with simple rules based on your monthly income.

Use our home affordability calculator to figure out how much house you can afford.. should be no more than 36% of your gross income.. assumes a 30-year mortgage at current rates, and.

This article explains how mortgage lenders determine the maximum amount you can borrow based on your income. The short answer: These days, most lenders limit borrowers to a maximum debt-to-income ratio of 45% to 50%. So those applicants who fall above that threshold might have a harder time qualifying for a mortgage loan.

In addition, mortgage insurance for these low income home loans is discounted. With three percent down, standard mortgage insurance for a buyer with a 720 FICO score is .95 percent per year. With these special programs, though, you might pay just .65 to .77 percent. Avoiding PMI is costing you \$13,000 a year.

You can use our Monthly Gross Income calculator to determine your gross income based on how frequently you are paid and the amount of income you make per pay period. Select how often you are paid and input how much money you earn per pay period and the calculator shows you your monthly gross income.

But the starting point for just about everyone is the same – determining how much money. for the below: Mortgage Payment Ratio: One general rule banks use is your monthly mortgage payment should.

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Here's the salary you'll need if you want to afford a mortgage in 17. based on homebuyers who spend 30% or less of their gross income on.

To determine how much house you can afford, most financial advisers agree that people should spend no more than 28 percent of their gross monthly income on housing expenses and no more than 36.

Sticking with our example of an income of \$5,000 a month, you could afford these options on a 15-year fixed-rate mortgage: \$187,767 home with a 10% down payment (\$18,777) \$211,238 home with a 20% down payment (\$42,248) \$241,415 home with a 30% down payment (\$72,424)