Tom and Mary Miller
Home Mortgage Qualifying Worksheet
Tom Miller’s
gross annual salary
$15,500
Mary Miller’s
gross annual salary
17,500
Total gross annual
salary
33,000
Total monthly income
( $33,000 divided by 12)
2,750
Monthly gross income
2,750
Multiply by 28%
x .28
Allowable monthly
housing costs
770
Home purchase price
63,000
Down payment
8,000
Mortgage loan amount
55,000
30-year, $55,000 loan
at 8% interest—monthly payment
(See this page for more information)
404
Monthly taxes and
insurance
+ 150
Total monthly housing
costs
554
Monthly gross income
2,750
Multiply by 36%
x .36
Allowable total
monthly debt
990
Other monthly debts
Car payment
258
Total other monthly
debts
258
Total monthly housing
costs
554
Total other monthly
debts
+ 258
Total monthly
costs
$812
This is the home mortgage qualifying
worksheet for Tom and Mary Miller. With two teenagers in
the house, they would like a home with three bedrooms and
at least two bathrooms. Houses that size cost at least $60,000
in their neighborhood. They saw one in the paper that looked
just right. It was $63,000. It hasn’t been easy, but
Tom and Mary have managed to save $8,000 for a down payment.
They have also set aside $3,000 for closing costs on the
sale of the house. They would need to borrow up to $55,000
to buy the kind of house they have in mind. They don’t
want to get their hopes up by looking at houses that are
not within their budget. Look at the chart above. Do you
think they will be able to afford to look at houses in the
price range they’d like? (You can use the chart on
this page to figure out the monthly
payment on a 30-year loan.)
