Are you planning to submit a mortgage loan proposal? Before doing so I would suggest you to make sure that you have the satisfactory level of income needed to qualify for the loan. Let this ACalculator help you out by determining the monthly housing payment (PITI), Principal & Interest (PI), monthly liability payment, and monthly housing expense payment.
Desired mortgage amount
Amount you want to finance through the mortgage loan.
Monthly housing expenses
Total amount needed to meet the monthly housing expenses as specified on the housing expenses worksheet. Monthly tax and insurance cost of the PITI payment is included here.
As specified on the liabilities worksheet, this is your total monthly liabilities. This information is handy to determine the maximum PITI payment.
Monthly housing payment (PITI)
Monthly housing payment including Principal & Interest, Tax, and Insurance (PITI). The tax and insurance part is sum of principal mortgage insurance (PMI), hazard insurance, real estate taxes, and other related fees. Following are two ways to calculate monthly PITI payment. The lower one will be applicable.Monthly PITI payment = Monthly Income X .28Monthly PITI payment = Monthly Income X .36 – Other loan payments
Maximum principal and interest (PI)
This is the numbers that determine the size of amount you are eligible to receive from the mortgage. After you subtract the TI from the total PITI, you will have the maximum principal and interest amount.
Start interest rates at
Current rate of interest available on the mortgage.
Term in years
Maximum number of years permitted to repay the full mortgage amount.