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.



Real Estate Questions and Answers

RealEstateAgent.com is all about real estate, please browse our FAQ's made by people for people. The Real Estate Market is very complex, if you are looking into buy a home, selling a home, home values or refinance, we can help. Just browse our FREE Real Estate Questions and Answers, we encourage you to contact our Featured Real Estate Agents so they can assist you with any Real Estate Questions you may have. Commercial Real Estate Questions and Answers

To browse our Real Estate FAQ terms please click the following link: Real Estate FAQ

RealEstateAgent.com is dedicated to provide the most up to date Commercial Real Estate Questions and Answers available in today's market, we invite you to contact our Featured Real Estate Agents so they can assist you with any Commercial Real Estate Questions you may have.

If you are interested to: Buy a Home in Hollywood, Sell a Home in Hollywood, Rent a Home in Hollywood, Commercial in Hollywood

(5) Real Estate Agents found in Hollywood city.

  • Ed  Rangel

    Keller Williams

    Ed Rangel

    Mobile: 786-763-5650   

    Send Email Website Agent Listings Driving Directions

    "ED RANGEL - REALTOR ASSOCIATE - AT NINETEEN(19) YEARS OF AGE, ED RANGEL WAS A PROFESSIONAL FRAMER AND DRY-WALLER,LATER ON TO BECOME LICENSED IN THE STATE OF CONNECTICUT AS SUCH. WITH AN EARLY START IN THE REAL ESTATE WORLD,AT THE AGE OF TWENTY ONE(21), AS AN INVESTOR, A LITTLE OVER FOURTEEN " ... view more

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

    L.M.G Realty INC.

    Elizabeth Castro

    Mobile: 305-962-8744    Office: 305-962-8744   

    Send Email Website Agent Listings Driving Directions

    "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 real estate because of the compl" ... view more

       Fair Housing and Equal Opportunity (FHEO)   REALTOR®   The Multiple Listing Service Mark
  • Diana Mazel Pittarelli

    First Colonial Realty

    Diana Mazel Pittarelli

    Mobile: 954-445-0220
    Assistant (Anna) 954-744-9732
       

    Send Email Website Agent Listings Driving Directions

    " Raised in South Florida, and a graduate of Barry University with a masters degree in business management, Diana knows the area and its schools. Diana is dedicated to helping her clients identify and the best neighborhood and home for them. Are you looking for an " ... view more

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

    The Keyes Company

    Yael Weizman

    Mobile: 1-954-410-9358   

    Send Email Website Agent Listings Driving Directions

    " Whether a first-time buyer, seasoned homeowner, or multi-property investor, the team at The Keyes Company is your go-to resource for all things real estate. Family-owned and in business since 1926, The Keyes Company has grown across the state of Florida. We have captured accolades such as bein" ... view more

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

    Keller Williams Realty

    Irina Ivkina

    Mobile: 1-305-316-5733    Office: 1-305-316-5733   

    Send Email Website Agent Listings Driving Directions

    "I am new to real estate; however, I am very interested in this business and was attending many seminars and workshops, including investments, commercial real estate, creative financing techniques, and many others. I have experience working at the Title Company which pretty much covers my rea" ... view more

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

If you are interested in other Real Estate FAQ terms


Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
read Reviews

Agents join here