Tag: loan payments

Two ratios are calculated by mortgage lenders to determine a buyer's maximum loan amount:1) the front ratio and, 2) the back ratio. Front Ratio: The total mortgage payment including principal, interest, taxes and insurance (PITI) as well as any condominium or homeowner association fees divided by your total GROSS income. Traditionally, this ratio must be below 30% Example: With a gross income of $5000 per month, a total mortgage payment (PITI) of $1350, the front ratio would be 27%. Back Ratio: The total mortgage payment PLUS any car payments, credit card and any other loan payments including student loans divided by your total GROSS income. Traditionally this must be below 40%. Example: With a gross income of $5000 per month, a total mortgage payment of $1350, a car payment of $325, 1 credit card payment of $60 and 1 student loan payment of $150 for a total of $1885 with a back ratio of 38%. For more information or to set up an appointment call Julie at (703)765-0300. If you need help calculating your ratios, please contact Julie Nesbitt at 703 765 0300.

Choose Wisely

For most people in Northern Virginia, the most important investment you will ever make is probably the purchase of a home. Knowing the basics about home-buying will give you a head start and save you time and money in your search.  Additionally Nesbitt Realty can rebate THOUSANDS of dollars to clients who want to use our Realtor services. Phone Nesbitt Realty to learn more about  your choices in {Location_Name}. [Read more about buying a home]