Purchase Price $550,000 20% downpayment = $110,000 30 year,5% mortgage = $550,000 -110,000 = $440,000 Monthly prinicpal & interest payment = 5.37 x 440 = $2,362.80 Taxes $383 Insurance 185 Total PITI = $2,362.80 +$383 + $185 = $2930.80 Housing Ratio: PITI 28% of gross annual income Monthly income required= Annual income required = Total Debt Ratio: PITI + Debt service 36% of Gross Annual Income PITI Car payment = $2,930.80 +28% = $10,467.14 $10,467.14 x 12 = $125,605.68 Student loan credit card Total debt 2,930.80 260 120 300 3,610.80 36%