How to figure my qualifying ratio? (insurance, loan, credit card, loan) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

incahoots · 01-04-2010, 04:25 PM

For my loan I need a qualifying ratio of 29/41. How is this figured?

VictorBurek · 01-04-2010, 04:29 PM

divide your total monthly obligations by your gross income to get the first number. Divide your total monthly obligations including mortgage payment by your gross income for the 2nd number.

obligations would be any payment on credit report so doesnt include cell phone, car insurance, etc... For credit cards use the minimum monthly payment.

Gross income is what you make before uncle sam takes his growing share.