PMI appears above if your down payment is less than
20% of your home value. That means you must pay an extra .32%
to .90% a year until you break the 20% criteria. They also add
that into the income requirement.
The Front End Ratio (28%) income is based
on PITI (Principal + Interest + Tax + Insurance) or more specifically,
the mortgage principal plus interest amount plus your monthly
property tax and home insurance the lender typically holds in
an escrow account for you. This monthly amount is listed above
as Total monthly lender payment.
The Back End Ratio (36%) income is based
on the PITI (Principal + Interest + Monthly Property Tax + Monthly
Home Insurance + Monthly Debt). This total amount is the sum
described above as Total monthly debt payment.
As long as your total income (salary + interest income + rental
income + dividend income) meets ONE of the two incomes
you will probably qualify, and if it meets both you are in even
The accuracy and
use of this calculator is not guaranteed.
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