Calculated Industries 3415 Qualifier Plus IIIX Real Estate Finance Calculator Home affordability calculators are based on mortgage loan origination ratios known as the front ratio and the back ratio. The Bankrate glossary defines the front ratio as, “The percentage of monthly before-tax income that goes toward a house payment — a key ratio that lenders use when deciding whether to approve a mortgage application. Traditionally, lenders didn’t like it when the total mortgage payment (principal, interest, taxes and insurance) divided by gross monthly income exceeded 28 percent. Modern risk-based pricing, however, has made lenders more flexible.”

click here for article

search for :