STEP 3: This step calculates an estimate of the actual mortgage amount you will qualify for. It uses the LOWER of (B) from Step 1 or (D) from Step 2 to determine the maximum amount available for your housing related payments. From this amount the estimated property taxes, heating costs and maintenance fees (where applicable) are deducted leaving the amount available for your mortgage payment. This amount is then converted into a mortgage amount.
|
| MAXIMUM available to cover housing payments: Lower of OF (B) OR (D) |
+$________ |
| LESS 1/12 of estimated net annual property |
-$_________ |
| LESS estimate of monthly heating costs |
-$_________ |
| Less: one-half of estimated monthly condominium maintenance fees |
-$_________ |
| AMOUNT AVAILABLE TO COVER MORTGAGE PAYMENTS |
=(E)$________ |
TO CALCULATE MAXIMUM MORTGAGE PREQUALIFICATION . . .
(E) $______ divided by (F)________ = $___________ divided by (G) _________ = (H) $___________ |
| ** (H) = NET MORTGAGE QUALIFICATION OF $________________ ** |
(F) = MORTGAGE PAYMENT FACTOR
Current Mortgage Payment Factor is:
0.00
- Enter as (F) in above formula. |
(G) = MORTGAGE INSURANCE FACTOR
Choose one of the underlined amounts below and insert for (G). Factor is determined by your down payment as a percentage of the purchase price.
1.0275 (where down payment will be less than 10%)
1.0200 (where down payment will be between 10% to 15%)
1.0175 (where down payment will be between 15% to 20%)
1.0100 (where down payment will be between 20% to 25%) |
