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worksheet for calculating the maximum mortgage loan for which you qualify

Worksheet for calculating the maximum mortgage loan for which you qualify

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a. Monthly income (annual income divided by 12) \$5,250.00 b. Times 0.28: Percentage of PITI (Principal, interest, taxes, and insurance) to your monthly gross income that lenders will lend in the form of a mortgage loan (multiply line a by 0.28) x 0.28 = \$1,470.00 c. Less: Estimated monthly real estate tax and insurance payments - \$275.00 d. Equals: Your maximum monthly mortgage payment using the 28% = \$1,195.00 To Determine the Maximum Mortgage Loan Level Using the Maximum Monthly Mortgage Payments as Determined Using the PITI Ratio (line d): Step 1: Monthly mortgage payment for a \$10,000 mortgage with a ____ year maturity and a ____% interest rate (using Table 8.1) = \$73.38 Step 2: Maximum mortgage level = maximum monthly mortgage payment (line d) divided by the monthly mortgage payment on a \$10,000, ____%, ____year mortgage (step 1 above) times \$10,000 = (line d/step = \$162,850.91 e. Monthly income (annual income divided by 12) \$5,250.00 f. Times 0.36: Percentage of PITI + current monthly fixed payments to your monthly gross income that lenders will lend in the form of a mortgage loan (multiply line a by 0.36) x 0.36 = \$1,890.00 g. Less: Current nonmortgage debt payments on debt that will take over
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