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|
| |
Let's
see how the "other half" lives. |
| Although
this is meant to be a slightly humorous look at EXTREME loan
amounts there is a wealth of information to be gleaned.
These
figures are actual and were calculated using FNMA/FHLMC guidelines.
The
Qualifying figures are representative of complete PITI payments
with medium taxes and standard Home Owners "B" insurance
according to the Texas State rate chart.
Since these Qualifier charts only take into consideration income
and outgo, actual numbers would need to be adjusted upwards and/or
downwards depending upon the borrower's stability factors, credit
history & scores, and cash reserves.
|
A
lightheartedlook at qualifying:
| $500,000
Loan |
6% |
7% |
8% |
8.5% |
9% |
| P&I
payment |
$2,998 |
$3,329 |
$3,668 |
$3,844 |
$4023 |
| If
monthly Bills are: |
MONTHLY
Income Needed To Qualify @ full PITI payment |
| $1,875 |
$17,088 |
$18,001 |
$18,951 |
$19,440 |
$19,936 |
| $2,500 |
$18,824 |
$19,738 |
$20,688 |
$21,176 |
$21,672 |
| $3,750 |
$22,296 |
$23,210 |
$24,160 |
$24,649 |
$25,144 |
| $5,000 |
$25,768 |
$26,682 |
$27,632 |
$28,121 |
$28,617 |
| $750,000
Loan |
6% |
7% |
8% |
8.5% |
9% |
| P&I
payment |
$4,496 |
$4,994 |
$5,503 |
$5767 |
$6,034 |
| If
monthly Bills are: |
MONTHLY
Income Needed To Qualify @ full PITI payment |
| $2,812 |
$25,631 |
$27,002 |
$28,427 |
$29,160 |
$29,904 |
| $3,750 |
$28,235 |
$29,606 |
$31,031 |
$31,765 |
$32,508 |
| $5,625 |
$33,444 |
$34,815 |
$36,240 |
$36,973 |
$37,717 |
| $7,500 |
$38,652 |
$40,023 |
$41,448 |
$42,181 |
$42,925 |
| $1,000,000
loan |
6% |
7% |
8% |
8.5% |
9% |
| P&I
payment |
$5,995 |
$6,658 |
$7,337 |
$7,689 |
$8,046 |
| If
monthly Bills are: |
MONTHLY
Income Needed To Qualify @ full PITI payment |
| $1,875 |
$34,175 |
$36,003 |
$37,903 |
$38,881 |
$39,872 |
| $2,500 |
$37,647 |
$39,475 |
$41,375 |
$42,353 |
$43,344 |
| $3,750 |
$44,592 |
$46,419 |
$48,319 |
$49,297 |
$50,289 |
| $5,000 |
$51,536 |
$53,364 |
$55,264 |
$56,242 |
$57,233 |
|
Now
compare and contrast to a couple
of more real world examples:
| $100,000
Loan |
6% |
7% |
8% |
8.5% |
9% |
| P&I
payment |
$600 |
$666 |
$734 |
$769 |
$805 |
| If
monthly Bills are: |
MONTHLY
Income Needed To Qualify @ full PITI payment |
| $375 |
$3,418 |
$3,600 |
$3,790 |
$3,888 |
$3,987 |
| $500 |
$3,765 |
$3,984 |
$4,138 |
$4,235 |
$4,334 |
| $750 |
$4,459 |
$4,642 |
$4,832 |
$4,930 |
$5,029 |
| $1,000 |
$5,154 |
$5,336 |
$5,526 |
$5,642 |
$5,723 |
| $175,000
Loan |
6% |
7% |
8% |
8.5% |
9% |
| P&I
payment |
$1,049 |
$1,165 |
$1,284 |
$1,346 |
$1,408 |
| If
monthly Bills are: |
MONTHLY
Income Needed To Qualify @ full PITI payment |
| $656 |
$5,981 |
$6,300 |
$6,633 |
$6,804 |
$6,978 |
| $875 |
$6,588 |
$6,908 |
$7,241 |
$7,412 |
$7,585 |
| $1,312 |
$7,804 |
$8,123 |
$8,456 |
$8,627 |
$8,801 |
| $1,750 |
$9,019 |
$9,339 |
$9,671 |
$9,842 |
$10,016 |
| $252,700
Loan |
6% |
7% |
8% |
8.5% |
9% |
| P&I
payment |
$1,515 |
$1,682 |
$1,854 |
$1,943 |
$2,033 |
| If
monthly Bills are: |
MONTHLY
Income Needed To Qualify @ full PITI payment |
| $948 |
$8,636 |
$9,098 |
$9,578 |
$9,825 |
$10,076 |
| $1,264 |
$9,513 |
$9,975 |
$10,455 |
$10,703 |
$10,953 |
| $1,895 |
$11,268 |
$11,730 |
$12,210 |
$12,457 |
$12,708 |
| $2,527 |
$13,023 |
$13,485 |
$13,965 |
$14,21, |
$14,463 |
|
As
you can see the biggest difference in payment isn't the interest
rate, but the loan amount. This means that should interest rates
rise or fall by a small amount while you are shopping for a
home or while your loan is in process, the change in your monthly
payments will hardly be noticeable.
By
looking at the Income Needed To Qualify you can see that Debts
obviously have a great impact upon the amount of home loan a
person can qualify for. Reducing your
debt load is like giving yourself a raise!
Based
upon an 8% home loan & depending upon whether the debt is
one of many or the only debt you have, adding a $400 car payment
(or credit card debt) could reduce the amount of loan a person
can qualify for by as much as $39,623. Sobering thought!
|
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