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Income Mortgage Calculator

What income is required to qualify for a mortgage? That largely depends on your monthly debt payments and the current interest rate. This calculator collects these important variables and determines your required income to qualify for your desired mortgage amount.

Mortgage Required Income

At INTEREST_RATE your required income for a LOAN_AMOUNT mortgage is YOUR_INCOME.

**GRAPH**

An income of YOUR_INCOME provides for a maximum Principal, Interest, Taxes and Insurance (PITI) payment of LOAN_PITI. After taxes and insurance your principal and interest payment (PI) of LOAN_PI would pay for a LOAN_AMOUNT mortgage, with an interest rate of INTEREST_RATE and a term of TERM_IN_YEARS years.

Mortgage Required Income Results
Term TERM_IN_YEARS years
Interest rate INTEREST_RATE
Housing payment (PITI) LOAN_PITI
Principal & interest payment (PI) LOAN_PI
Monthly housing expenses MONTHLY_HOUSING_EXPENSES
Monthly liabilities MONTHLY_LIABILITIES
Required annual income YOUR_INCOME

Housing Expenses
Real estate taxes REAL_ESTATE_TAXES REAL_ESTATE_TAXES_UNIT
Hazard insurance HAZARD_INSURANCE HAZARD_INSURANCE_UNIT
Housing expenses HOUSING_EXPENSES HOUSING_EXPENSES_UNIT
Mortgage insurance MORTGAGE_INSURANCE MORTGAGE_INSURANCE_UNIT

Current Monthly Liabilities
  Borrower Co-borrower
Auto loans AUTO_LOANS COBORROWER_AUTO_LOANS
Credit cards CREDIT_CARDS COBORROWER_CREDIT_CARDS
Installment loans INSTALLMENT_LOANS COBORROWER_INSTALLMENT_LOANS
Student loans STUDENT_LOANS COBORROWER_STUDENT_LOANS
Alimony & child support ALIMONY_CHILD_SUPPORT COBORROWER_ALIMONY_CHILD_SUPPORT
Other loans OTHER_LOANS COBORROWER_OTHER_LOANS
Other OTHER_LIABILITY COBORROWER_OTHER_LIABILITY

Qualify Calculation

Your LOAN_PITI monthly housing payment (PITI) is calculated by taking the higher of these two calculations:

1. Monthly PITI/ LOW_DEBT_PITI_RATE = monthly required income
    Which is: LOAN_PITI / LOW_DEBT_PITI_RATE = YOUR_INCOME_LOW

2. (Monthly PITI + Monthly Liabilities) / HIGH_DEBT_PITI_RATE = Monthly required income
    Which is: (LOAN_PITI + MONTHLY_LIABILITIES) / HIGH_DEBT_PITI_RATE = YOUR_INCOME_HIGH

Required Income for a Range of Interest Rates

**REPEATING GROUP**

Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.



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Definitions

Desired mortgage amount
The total loan amount you are looking to qualify for.

Monthly housing expenses
Your monthly housing expenses from the housing expenses worksheet. The items entered as housing expenses make up the taxes and insurance portion of your monthly PITI payment.

Monthly liabilities
Your monthly liabilities from the liabilities worksheet. Your monthly liabilities are used to calculate your maximum PITI.

Monthly housing payment (PITI)
This is your total Principal and Interest, Tax and Insurance (PITI) payment per month. This includes your principal, interest, real estate taxes, hazard insurance, association dues or fees and principal mortgage insurance (PMI). Maximum monthly payment (PITI) is calculated by taking the lower of these two calculations:

  1. Monthly Income X 28% = monthly PITI
  2. Monthly Income X 36% - Other loan payments = monthly PITI

Maximum principal and interest (PI)
This is your maximum monthly principal and interest payment. It is calculated by subtracting your monthly taxes and insurance from your monthly PITI payment. This calculator uses your maximum PI payment to determine the mortgage amount that you could qualify for.

Start interest rates at
The current interest rate you could receive on your mortgage. This is used as the starting point for displaying a range of interest rates and the resulting mortgage amount.

Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.