Home Buying Worksheet

Your Family
1, Gross Annual Income (before taxes)  
$ 48,000


Gross Monthly Income  
$ 4,000
  Line one divided by 12  
3. Monthly Allowable Housing Expense and Long-Term Obligations  
  Line 2 multiplied by .38  
  **(38% of gross monthly income is usually allocated for principal, interest, taxes, insurance and monthly long-term obligations.)  
$ 1,520
4. Monthly Allowable Housing Expense  
  Line 3 minus your monthly obligations*--credit cards, child support, car loan, etc.  
  (Remainder is allowable principal, interest, taxes and insurance payment.) NOTE: Monthly Allowable Housing Expense on line 4 should not exceed 33%** of line 2. If it does, enter the lesser amount of the two on line 4 and continue.  
$ 400
5. Monthly Principal and Interest Payment  
  Line 4 multiplied by .80  
  (80% is the amount of the monthly allowable housing expense usually allocated to only the principal and interest payment, excluding taxes and insurance.  
$ 1,120
6. Estimated Mortgage Amount  
  Line 5 divided by 7.34 multiplied by $1,000  
  (7.34 is the factor for an 8% loan amortized over a 30 year term. Factors for other interest rates and terms are show in the Interest Rate Factor Chart .  
$ 896
7. Estimated Affordable Price***  
  Line 6 divided by .80  
  (80% is the morgage loan amount, assuming a 20% down payment. Use .90 for a 10% down payment.)  
$ 152,600

If you would like our help with this worksheet, ask a member of our team.

This material is inteded for example purposes only and is not a commitment for financing. This worksheet is intended for use on primary residences. Your rate and affordable price will vary, depending on the size of your down payment, specific terms of your loan, other monthly obligations and the amount of assessment fees, if applicable.

*The example column is based upon a customer with a gross annual income of $48,000 and monthly long-term obligations of $400, an interest rate of 8%, a morgage amount of $122,000 and an Annual Percentage Rate of 8.125%.

**These are standart industry guidelines; however, there are a variety of other morgage products with flexible options.

***Rounded to the nearest $100.