Use this form to help you determine:
- Your Monthly Mortgage Payment AFTER ALL Expenses
- Your Debt-To-Income Ratio (DTI)
Your Debt-to-Income ratio is what the lender looks at to see how much debt you have versus how much income you bring in monthly. Your lender will use “Gross” which is BEFORE taxes.
Now this form below offers you the advantage to adjust your DESIRED monthly mortgage payment. When filling out your expenses – DO NOT put in your current rent (if you’re paying now).
This form is designed for you to put your DESIRED MONTHLY MORTGAGE PAYMENT in – at the bottom.
Hopefully, this form will let you see how your monthly payment structure will flow and put your mind at ease a little bit more about meeting your financial obligations.
If this form helped you and you know someone else who this form might help, instead of forwarding the page, please encourage them to sign up for the Ninja Home Buyer Course.
The benefits of the entire program will help them far more than just this form. Thanks!
What does this “DTI” mean?
Okay, so if your Total Monthly Expenses EXCEED your Gross Income, you’ll notice that your DTI is greater than 1.
This means you have to adjust 1 of 2 things (or both)
- Your Gross Income has to be higher (you need to make more money).
- You have to lower your monthly expenses.
Debt-to-Income (DTI) Ratio is: How much debt you have VERSUS how much income you make.
An IDEAL DTI is less than .55. That means your debts are a little more than half of your gross income (before taxes).
Items you can adjust immediately:
- Savings
- Entertainment
Items you can adjust over a longer term:
- Credit Cards (pay extra to pay them down quicker)
- Cell phone (change your plan or phone) – Note cell phone bill for a lender application may not be a bill they consider fixed but I do.
- Car payment
If you have any questions or are confused about this form, please call me to discuss (631)831-9048. You can text me as well.
