The borrower wants to know how much you can borrow. First, he went to the site to use various online budget calculator. He received a quote from the calculator. Then, ask a mortgage lender. The mortgage company gave him an appointment. Finally, he asked to another lender. The mortgage lender Recent given a new appointment that does not match the quote above. Nobody to blame here. Each lender has specific criteria for how long you can qualify for the maximum mortgage loan.
These are the three common factors to qualify for a mortgage loan:
– The loan to the value of a property value shall not exceed the loan.
– The gross debt service (GDS), a percentage of gross income must not exceed payment.
– Total Debt Service Ratio (TDS), a proportion of gross income must not exceed payment, home expenses, and overall debt.
Monthly Payment Mortgage Maximum
The borrower earns $ 120,000 gross annual income. And, pay $ 1,500 per month bonds, $ 3,500 annual property tax, and $ 300 Annual home insurance. In addition, we seek to 6.5% mortgage interest rate and 30 years. The most affordable online calculator use GDS and 32%, 40% of TDS, and LTV ratio of 75%.
Here is the calculation of GDS:
= [(Gross annual income * GDS) - Property Tax Annual - annual home insurance] / 12
= [($ 120,000 * 0.32) - $ 3500 - $ 300] / 12
= $ 2,883.33
Here is the calculation TDS:
= ([(Annual gross income * GDS rate) - annual property tax - Annual Home Insurance] / 12) – monthly obligations
= ([(120,000 * $ 0.40) - $ 3500 - $ 300] / 12) – $ 1.500
= $ 2,183.33
The maximum monthly mortgage payment is the lesser of GDS and TDS. Your mortgage payment monthly maximum is $ 2,183.33, since TDS is less than the GDS.
Maximum mortgage amount
Here is the calculation of rent:
= $ 2183.33 [1 - (1 + [6.5% / 100 / 12]) -30 * 12] / [6.5% / 100 / 12]
= $ 2183.33 [1 - (1 + [0.005417]) -360] / [0.005417]
= $ 345,426.96
The maximum mortgage is $ 345,426.96
LTV (LVR)
The loan purpose of ratio of the value the borrower for the first time is 75%. Loan Ratio / Value tells us that the borrower may borrow $ 460,569.28 $ 115,142.32 down payment ($ 460,569.28 loan value – $ 345,426.96 the maximum mortgage).
Here LVR calculation:
= Maximum amount of mortgage and loan value ratio of 75%
= $ 345,426.96 / 0.75
= $ 460,569.28
Dennis Estrada is a webmaster of Mortgage Calculators which calculate the mortgage payments, and compare different interest rates.
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