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Monthly payments and your income

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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