To calculate the mortgage amount for which you qualify:

  1. Add monthly principal and interest payment from chart below:       _________

  2. Add monthly real estate tax:                                                                              _________

  3. Add monthly insurance payment:                                                                   _________

     TOTAL BASIC MONTHLY HOUSING COST                                                         _________

     The total basic monthly housing cost is normally based on 25%
     to 28% of the gross monthly income depending on leading
     institutions and types of financing.  From chart below.                             _________

     With debt service, the ratio becomes 33% to 36%. From chart.              _________

Gross
Yearly
Income
25% of
Gross
Monthly
Income
28% of
Gross
Monthly
Income
33% of
Gross
Monthly
Income
36% of
Gross
Monthly
Income
$15,000. $313. $350. $413. $450.
$20,000. $417. $467. $550. $600.
$25,000. $521. $583. $688. $750.
$30,000. $625. $700. $825. $900.
$35,000. $729. $817. $963. $1,050.
$40,000. $833. $933. $1,100. $1,200.
$45,000. $938. $1,050. $1,238. $1,350.
$50,000. $1,042. $1,167. $1,375. $1,500.
$55,000. $1,146. $1,283. $1,513. $1,650.
$60,000. $1,250. $1,400. $1,650. $1,800.
$65,000. $1,354. $1,516. $1,788. $1,950.
$70,000. $1,458. $1,633. $1,925. $2,100.
$75,000. $1,563. $1,750. $2,062. $2,250.
$80,000. $1,667. $1,867. $2,200. $2,400.
$85,000. $1,772. $1,983. $2,338. $2,550.
$90,000. $1,875. $2,100. $2,475. $2,700.
$95,000. $1,979. $2,217. $2,613. $2,850.
$100,000. $2,083. $2,333. $2,750. $3,000.

MONTHLY PAYMENTS OF PRINCIPAL AND INTEREST
MORTGAGE AMOUNT (based on 30 year term)

INTEREST
RATE
MONTHLY
COST
(per thousand)
15% $12.65
14.5% 12.25
14% 11.85
13.5% 11.46
13% 11.07
12.5% 10.68
12% 10.29
11.5% 9.91
11% 9.53
10.75% 9.43
10.5% 9.15
10.25% 8.97
10% 8.78
9.75% 8.60
9.5% 8.41
9.25% 8.23
9% 8.05
8.75% 7.87
8.5% 7.69
8.25% 7.52
8% 7.34
7.75% 7.17
7.5% 7.00
7.25% 6.83
7% 6.66
 

 

THE REAL COSTS
OF BUYING A HOME

In addition to the 20% down payment for a $55,000 house, you should expect to pay another $2,995 or so for various closing costs.

CLOSING COSTS

20% Down Payment                $11,000
Two Points                                       880
Six Month's Property Tax               500
Transfer Tax Fee                              550
Recording Fees                                  30
Mortgage Application Fee             100
Homeowner's Insurance                 200
Appraisal                                           175
Title Insurance & Attorney Fees  525
Credit Report                                      35 
  
Subtotal                                  $13,995