- November 9, 2014
- Posted by: Brian Poncelet
- Category: Approved, Life Insurance
So you want to buy a house?
Here is some numbers you need to know first.
Formula is Mortgage payment + Property taxes + heating cost (or 50% of condo fees)
Here is an example:
Mortgage payments $1360/ month ($16,320/year)
Property Taxes $4,600
Gross income $80,000
$16,320 + $4,600 + $2,000
The ratio is 29% The limit or max is 32%.
Note: a job loss or a disability could wipe this person out unless they had at least 3-6 months of cash on hand.