Can I use a mortgage calculator to figure out how much income I need to qualify for a loan?

A mortgage qualification calculator or a mortgage payment calculator can be used to calculate the monthly income needed to qualify for a home loan.  The mortgage qualification calculator can be used by inputting an income level, a loan term and an interest rate to determine how large a loan that income level will qualify for based on the rate and term.  Now simply raise the income amount until you reach the desired loan amount.  Be aware that the mortgage calculator qualification factors consider the down payment and the debt ratios.  Down payments are fairly firm, they will rise if credit is less than perfect but other wise the down payment percentage and loan to value are fairly static qualifying factors.  Debt ratios are guidelines.  If a certain income level yields a loan amount of one number it is entirely possible to raise or lower that loan amount based on other factors such as liquid assets, credit and down payment.

This entry was posted on Thursday, December 11th, 2008 at 6:23 am and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.