Monthly Income

Author Message
Icon Mini Profile Sam
Sam
Site Admin


Joined: 21 May 2005

Posts: 280
Location: CALIFORNIA
116.97 Dollars($)
PostPosted: Fri Apr 09, 2004 12:41 am    Post subject: Monthly Income

Monthly Income refers to an individual's basic monthly salary, plus any additional allowances and monthly income from investments like Mutual Funds etc.

For example; Let the basic monthly salary of George be $50,000; additional allowances be $10,000 and monthly income from investments be $20,000. Therefore, total monthly income = $50,000 + $10,000 + $20,000 = $80,000

When you apply for a mortgage loan, one of the things that lenders check amongst other factors is your monthly income. This is compared to your monthly expenses to determine the amount of mortgage loan that you can actually afford.

In general, all the lenders agree that your mortgage related expenses in each month should not be more than 28% of your gross monthly income. These expenses include principal loan amount, interest and taxes. Thus, if the combined gross monthly income of a couple is $3,000 then they can afford a maximum mortgage payment of about $840, including taxes and insurance.

Related Article
Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Helpful References
34 Tax tips boost your savings
12 financial ways for Seniors
Budgeting Lesson 1
401k/403b Retirement Loan


Calculators     [View all]
Calculate Debt-Income Ratio
Calculate Retirement savings
Convert IRA to Roth IRA
Tax savings in 1031 Exchange


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit Live Help





DebtConsolidationCare    Insurance community: We Make You Insurance Smart    CreditMagic: Helping you build up credit


We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0