Kentucky USDA Rural Housing Mortgage Lender: Kentucky Mortgage: DEBT-TO-INCOME RATIOS
Kentucky Mortgage: DEBT-TO-INCOME RATIOS Kentucky USDA Rural Housing Mortgage Lender: Kentucky Mortgage: How much income do I need quali... : DEBT-TO-INCOME RATIOS From a Kentucky Mortgage lender's perspective, your ability to purchase a home depends largely on the following factors: Front-End Ratio The front-end ratio is the percentage of your yearly gross income dedicated toward paying your mortgage each month. Your mortgage payment consists of four components: principal, interest, taxes and insurance (often collectively referred to as PITI) A good rule of thumb is that PITI should not exceed 31% of your gross income. If you make $100,000 a year, then your max house payment to include escrows for home insurance, mortgage insurance, property taxes would be $2583.00 Back-End Ratio The back-end ratio, also known as the debt-to-income ratio, calculates the percentage of your gross income required to cover your debts. Debts include your mortgage, credit-card payments, child support a...