Your PITI, combined with any existing monthly debts, should not exceed 43% of your monthly gross income - this is called your debt-to-income ratio (DTI). When lenders assess whether or not you can afford a mortgage loan, they’ll compare your estimated PITI with your gross monthly income (income before taxes and deductions). How PITI affects your mortgage qualification If taxes and insurance are not included in a mortgage calculator, it’s easy to overestimate your home buying budget. When determining your home buying budget, consider your entire PITI payment rather than only focusing on principal and interest.
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