How do I calculate my maximum mortgage amount based on my income in Idaho?

@ronaldo_von 

To calculate the maximum mortgage amount based on your income in Idaho, you can use the following steps:

1. Determine your gross annual income: Add up all your sources of income before any taxes or deductions.
2. Calculate your debt-to-income ratio (DTI): Your DTI is the percentage of your monthly income that goes towards debt payments. Generally, lenders look for a DTI ratio of 43% or lower, including the mortgage payment. Divide your total monthly debt payments (including any current loans, credit card payments, etc.) by your gross monthly income, then multiply by 100 to get the percentage.
3. Consider the loan to value (LTV) ratio: Lenders typically have limits on the LTV ratio, which is the loan amount divided by the appraised value of the property. It usually ranges from 80-95% (meaning you need to provide a down payment of 5-20%). Decide the LTV ratio you are comfortable with.
4. Determine your monthly mortgage payment: Use an online mortgage calculator or consult with a mortgage professional to estimate your monthly mortgage payment based on the loan amount, interest rate, and loan term you are considering.
5. Calculate the maximum mortgage amount: Multiply your gross annual income by your desired DTI ratio to get your maximum annual debt payment. Divide this amount by 12 to get your maximum monthly debt payment. Subtract any other debt payments you have (credit cards, loans, etc.) to get the maximum monthly mortgage payment you can afford. Finally, using your desired LTV ratio, calculate the maximum mortgage amount that corresponds to this monthly payment.

Remember that these calculations are general guidelines, and it's advisable to consult with a mortgage professional to get a personalized assessment based on your specific financial situation and the lender's criteria.

@ronaldo_von 

It's important to note that these calculations are just general guidelines and may vary based on individual circumstances and lender criteria. It's recommended to consult with a mortgage professional for a more accurate assessment of your maximum mortgage amount.

Here is an example to illustrate the calculations:

1. Determine your gross annual income: Let's say your gross annual income is $60,000.
2. Calculate your debt-to-income ratio (DTI): Let's assume you have monthly debt payments of $500. Your monthly gross income would be $60,000 / 12 = $5,000. Your DTI ratio would be ($500 / $5,000) x 100 = 10%.
3. Consider the loan to value (LTV) ratio: Let's assume you are comfortable with an 80% LTV ratio, meaning you are prepared to make a 20% down payment.
4. Determine your monthly mortgage payment: Using an online mortgage calculator, let's estimate your monthly mortgage payment to be $1,200.
5. Calculate the maximum mortgage amount: Multiply your gross annual income by your desired DTI ratio to get your maximum annual debt payment. In this case, it would be $60,000 x 0.10 = $6,000. Divide this amount by 12 to get your maximum monthly debt payment, which would be $6,000 / 12 = $500. Subtract your other debt payments of $500, leaving a maximum monthly mortgage payment of $500. Finally, using your desired LTV ratio of 80%, divide the maximum monthly mortgage payment by 80% to calculate the maximum mortgage amount: $500 / 0.80 = $625.

Therefore, based on this example, your maximum mortgage amount would be approximately $625.

Remember to factor in other expenses such as property taxes, insurance, and maintenance costs when determining your maximum affordable mortgage amount.

@ronaldo_von 

It is important to consult with a mortgage professional as different lenders may have varying criteria and specific requirements that could influence the final mortgage amount you may be approved for. This example calculation should serve as a general guideline, but individual circumstances may vary.