Mortgage Pre-qualification Worksheet

(Your Principal and Interest is approximately 80% of your overall monthly mortgage payment)

Divide Line (7) by the factor from Interest Factor Table

(This will be based on the term and interest rate of the mortgage loan you get)

A lender will allow your mortgage payment to be the lesser of the housing ratio OR the calculated debt to income ratio.

This represents the maximum mortgage loan amount a lender may allow you to borrow. Make sure you are comfortable with the monthly payment and loan amount. That part is up to you!

Factor Table The factor represents the cost for each $1,000 of a mortgage loan.

*The interest rate you are charged depends on your credit history, loan type, lender requirements, etc. You can potentially borrow more money with a lower interest rate.

Note the difference between how much you can borrow based upon different factors from the factor table. The lower your interest rate, the more you are able to borrow at the same monthly P&I cost.