Looking for a mortgage?
How much money can you most likely afford to borrow?
Keep in mind that you'll need to put a 10% - 20% down payment and taxes will also add to the monthly payment.
Mortgage Rates and Minimum Incomes Needed to Qualify
|
Interest Rate | Monthly Payment | Minimum Annual Income |
4% | $454 | $21,770 |
5% | $510 | $24,479 |
6% | $570 | $27,340 |
7% | $632 | $30,338 |
8% | $697 | $33,460 |
9% | $764 | $36,691 |
10% | $834 | $40,017 |
11% | $905 | $43,426 |
12% | $977 | $46,905 |
Mortgage companies use ratios to analyze your mortgage payment. The above example shows the monthly payments of principal and interest, and income needed to qualify for a $95,000 mortgage at various interest rates, amortized on a 30-year schedule, assuming a payment ratio of 25%. Source: National Association of Home Builders, Economics Divis |
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