Home Buying Worksheet
| |
|
|
Example* |
Your Family |
| |
|
|
|
|
| 1,
|
Gross Annual
Income (before taxes) |
|
$
48,000 |
$__________ |
| 2.
|
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.