How can I figure out my debt-to-income ratio? - FAQ Real Estate Tags

How can I figure out my debt-to-income ratio?

To figure out where you stand on the debt-to-income ratio, you must first understand the meaning of the figure. Most lenders use the ratio 28/36. The first number, which is also referred to as the front-end ratio, is the percentage of your gross monthly income that you could comfortably afford to spend on your housing payments or mortgage. This figure includes the money you spend on property taxes and insurance as well as the loan payment itself. The second number, which can also be referred to as the back-end ratio, is the percentage of your gross monthly income that should be spent on all long-term monthly debts combined. Use the following guidelines to find out where you stand: - First, figure out your gross monthly income (your income before taxes). To do this, take your gross yearly income and divide it by 12. - Multiply this figure by 28 percent (.28). The amount you come up with is TYPICALLY the amount you could comfortably afford to spend on your housing payments per month. - Now, take your gross monthly income (your gross yearly income divided by 12) and multiply it by 36 percent (.36). The figure shown should be the TOTAL amount of money you spend on ALL LONG-TERM DEBTS COMBINED. To get a more accurate mortgage estimate, tally up your monthly bills - which include car payments, credit cards, child support, alimony, etc. - and subtract this amount from the figure you just came up with. However much money is left over is the amount you should truly be spending on your housing payments per month.



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(4) Real Estate Agents found in Hollywood city.

  • Chariff Realty Group

    Rolando Bazail

    Mobile: (786) 223-0207    Office: (305) 576-7474   

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       Fair Housing and Equal Opportunity (FHEO)   GRI Graduate REALTOR Institute   REALTOR®   The Multiple Listing Service Mark
  • Epic Florida Properties

    Art Snow Broker/Owner

    Mobile: 954-243-4569    Office: 954-745-4928    

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    "Art Snow has been in the business world working for large public companies and in several of his own businesses for over 30 years. Art brings to the table strong negotiating abilities and strives to get you the best price whether buying or selling. When working with Art you will find him to have A S" ... view more

       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark
  • Keller Williams Realty

    Erika Vergara

    Mobile: (954) 806-1025   

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    "Buy or sell real estate property. The purchase or sale of a home or investment property is one of the most complex and significant financial events in peoples' lives. People typically seek the help of real estate brokers and sales agents when buying or selling re" ... view more

       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark
  • Coral Shores Realty

    Susan Weaver

    Office: 1-954-668-9056   

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    " "Professional Service with a Personal Touch" I specialize in vacation condos & single family homes in the Southeast Florida beach and downtown areas of Hollywood, Hallandale Beach, Fort Lauderdale Beaches and Sunny Isles Beach. I also specialize in relocation, for m" ... view more

       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark

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