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Example
The following chart shows your maximum monthly payment and maximum
allowable debt load based on your gross annual income (remember,
gross income is pre-tax income):
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Debt-to-income ratio examples |
|
| $20,000 |
$467 |
$600 |
| $30,000 |
$700 |
$900 |
| $40,000 |
$933 |
$1,200 |
| $50,000 |
$1,167 |
$1,500 |
| $60,000 |
$1,400 |
$1,800 |
| $80,000 |
$1,867 |
$2,400 |
| $100,000 |
$2,333 |
$3,000 |
| $150,000 |
$3,500 |
$4,500 |
Here's a look at typical debt ratio requirements by
loan type:
Taxes and Insurance
In addition, lenders include the cost of taxes
and insurance when calculating how much house you can afford:
Calculator
Armed with the above information, check out the
Bankrate.com calculator, How
much house can you afford?
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