Essential Mortgage and Tax Calculations Flashcards
What is the typical minimum housing ratio that lenders may use to qualify a borrower for a conventional loan?
25%
What’s the typical high end of the housing ratio to qualify for a conventional loan?
28%
While the housing debt-to-income ratio looks at housing debt against the borrower’s income, total debt-to-income takes into account all of a borrower’s debt.
What’s the typical total debt-to-income ratio to qualify for a conventional loan?
33%-36%
how do you calculate debt to income ratio
debts divided by gross income then multiplied by 100
( loan balance x Interest rate) ÷ Number of payments annually
what is this formula used for
Monthly interest amount
Annual interest amount ÷ loan balance
this formula is used to find what
interest rate
how do you calculate assessed value
Appraised value × assessment ratio
how do you calculate annual property tax
Assessed value × tax rate
how do you calculate monthly property tax
Annual property tax ÷ 12
Value of the property x transfer tax rate
this is the formula for what
transfer tax amount
Mortgage tax amount is calculated using what formula
Amount financed x mortgage recording tax rate = Mortgage tax amount
u must divide your transfer tax rate by what before you multiply it by the home value
100
