USE THIS TO CALCULATE THE MONTHLY PAYMENT OF YOUR NEW HOME
Your home mortgage loan's monthly payments may be calculated using a mortgage calculator, which can be used to compute monthly payments of a house mortgage debt based on the property's sale price, the length of time for which the loan is desired, buyer's down payment percentage, and interest rate. For loans with a down payment of less than 20%, this calculator does not include PMI (Private Mortgage Insurance) or property taxes and home owner's insurance.
WHAT INCOME DO YOU NEED TO QUALIFY FOR A $500K MORTGAGE?
It's also impossible to know what income is required for a $500K mortgage, much like the one above. However, we may make a more basic calculation than the one provided previously. A reasonable rule of thumb is that your total annual income should not exceed 2.5 to 3 times the cost of your home. This implies that if you want to buy a $500,000 property or qualify for a $500,000 mortgage, your yearly salary must be between $165K and $200K.
The majority of homebuyers are able to obtain a mortgage with no down payment and low mortgage payments. In some cases, a borrower can even qualify for a mortgage based on the value of his or her property alone (called an "equity loan"). These requirements apply equally to all types of houses, including those bought as an investment property.
The resulting figure should give you a good idea of the mortgage amount you'll most likely be approved for.
The 28/36% rule is another way to calculate your housing budget. This means that you should spend no more than 28% of your monthly income on housing expenditures and no more than 36% on debt repayment. To come up with the figure of 28 percent of your gross monthly pay, multiply your monthly earnings by 28 and then divide by 100.
If your monthly income is $8,000, here's the maximum amount you can spend on your mortgage each month:
8,000 x 28 = 224,000. Then, divide the total by 100. 224,000 ÷ 100 = 2,240.