Foreign Buyers Guide to Buying a Home in Arizona USA For US citizens and residents | Page 16

how Much homE you can AFFoRD?
mortgage payment principal & interest 30-year loan
LOan aMOUnt
$ 80,000 $ 90,000 $ 100,000 $ 120,000 $ 140,000 $ 160,000 $ 180,000 $ 200,000 $ 220,000 $ 240,000 $ 260,000 $ 280,000 $ 300,000 $ 400,000 $ 500,000 $ 600,000 $ 700,000
Interest rate
5 %
5.5 %
6 %
6.5 %
7 %
7.5 %
8 %
8.5 %
9 %
429
454
480
506
532
559
587
615
644
483
511
540
569
599
629
660
692
724
537
568
600
632
665
699
734
769
805
644
681
729
758
798
839
881
923
966
752
795
839
885
931
978
1027
1076
1126
859
908
959
1011
1064
1118
1174
1230
1287
966
1022
1079
1138
1198
1258
1321
1384
1448
1074
1136
1199
1264
1331
1398
1468
1538
1609
1181
1249
1319
1391
1464
1538
1614
1692
1770
1288
1363
1439
1517
1597
1678
1761
1845
1931
1396
1476
1559
1643
1730
1818
1908
1999
2092
1503
1590
1679
1770
1863
1958
2055
2153
2253
1610
1703
1799
1896
1996
2098
2201
2307
2414
2147
2271
2398
2528
2661
2797
2935
3076
3218
2684
2839
2998
3160
3327
3496
3669
3845
4023
3221
3407
3597
3792
3992
4195
4403
4613
4828
3758
3975
4197
4424
4657
4895
5136
5382
5632

how Much homE you can AFFoRD?

THIS FoRMULA IS oNLY A GUIDE AND NoT To BE CoNSTRUED AS ACTUAL LENDING CALCULATIoNS. contact your loan officer to determine more accurately what price range you should consider. Lenders abide by certain ratios when calculating the loan amount their customers can qualify for and the ratios vary by lender and loan program. Many use 28 % of your gross monthly income as the maximum allowed for your mortgage payment( principal / interest / taxes / insurance or pItI); for your total monthly debt, the ratio is 36 %. total monthly expenses means pItI plus long-term debt( such as auto loans) and revolving / credit-card debt. do not include other expenses such as groceries, utilities, clothing, tuition, etc., to calculate this ratio.
MoNthLy payMeNts oN accouNts, auto, credIt card, LoaNs + ________________ + ________________ + ________________ + ________________ + ________________
= totaL MoNthLy ________________ debt( a)
gross MoNthLy INcoMe before taxes( b): ________________ x. 36
= aLLoWabLe ________________ totaL MoNthLy debt( c)
MoNthLy aLLoWabLe totaL debt
( c)
________________
MINus MoNthLy debt
–( a)
________________
= MoNthLy aLLoWabLe pItI
( d)
________________
Less 20 % for taxes & INsuraNce)
x. 80
= aLLoWabLe prINcIpaL / INterest oNLy
( e)
________________
gross MoNthLy INcoMe
( b)
________________ x. 28
= MoNthLy aLLoWabLe pItI
( f)
________________
( Less 20 % for taxes & INsuraNce)
x. 80
= aLLoWabLe prINcIpaL / INterest oNLy
( g)
________________
payMeNt: eNter Lesser of( e) or( g)
( h)
________________
usINg chart above, fINd curreNt INterest rate. Locate payMeNt aMouNt IN that coLuMN cLose to your prINcIpaL aNd INterest( h). fINd LoaN aMouNt to the Left aNd eNter here.
LoaN aMouNt
________________
for 20 % doWN
÷. 80
= hoMe prIce
________________
LoaN aMouNt
________________
for 10 % doWN
÷. 90
= hoMe prIce
________________
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