If you’re a future homebuyer, you might have used one of those “How much mortgage can I afford?” calculators online. These calculators typically gather information like your down payment amount, credit score range, monthly or annual income and debts.
Then, they’ll spit out an estimate of what a bank might lend you mortgage-wise.
These calculators work primarily by figuring out your debt-to-income ratio and then how much you can afford to pay for your monthly mortgage payment. This is similar to how banks decide how much to lend you, but first you must know what your monthly gross income is.
Yearly– Take your yearly gross pay and divide it by 12 months.
Monthly– If you are paid monthly, and then your gross pay is your gross monthly income. Pen and calculator
Semi-Monthly – Multiply your gross income by 2.
Bi-Weekly– Multiply your gross income by 26, then divide it by 12
Weekly– Multiply your gross income by 52 (weeks per year) and then divide it by 12 (months per year)
Hourly– Multiply your hourly income by the amount number of hours you work a week. Then multiply that amount by 52 (weeks per year) and divide it by 12 (months per year)
Gross income: Your gross income is how much you make before taxes, or any other deductions are taken out.
Here is a visual Chart
NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196
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