# Home Mortgage Qualification Calculator

Our home mortgage qualification calculator will help you in finding the answer to two very often asked questions “How much mortgage can I borrow ?” or “How much mortgage can i qualify for?”. This calculator not only tells you the maximum monthly payments that you may qualify for but also based on your income, the maximum mortgage loan that you can expect to get. You are also advised to test our mortgage payoff calculator.

## Home Mortgage Qualification Calculator

Home mortgage qualification calculator

## Affordable Mortgage vs Maximum Home Mortgage Qualification ?

You can have a rough estimate of the maximum amount of finance you can afford to do for acquiring a house is two to 2.5 times the gross annual income. But that is not what you may qualify for when you go to a lender. The banks or mortgage finance entity will calculate the maximum amount of your income that you can afford to use for paying back and they will also calculate the maximum amount of loan that you can afford to take (or they will be lending you). So here are some criteria , that lenders will take into account before deciding on the quantum of loan to you.

### (i)Gross Income

This is the level of income a prospective homebuyer makes before taking out taxes and other obligations. This is generally deemed your base salary plus any bonus income and can include part-time earnings, self-employment earnings, Social Security benefits, disability, alimony, and child support.

### (ii)Front-End Ratio or Housing Cost Ratio

What Is the front-end or housing cost Ratio? Basically, this ratio indicates the percentage of your yearly gross income that can be allocated to mortgage payments. Just divide the individual’s anticipated monthly mortgage payment by his/her monthly gross income.

### (iii)Back-End Ratio or Debt Service Ratio

As the term suggests, it is the percentage of your gross income required to cover your debts. In other words, if you pay \$5,000 each month in debt services and you make \$10,000 each month, your ratio is 50%—half of your monthly income is used to pay the debt. Most lenders recommend that your Debt Service Ratio should not exceed 43% of your gross income.