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How Large of a Loan Can I be Approved for?

What Does My Mortgage Payment Include?

• Lenders use a debt-to-income ratio to determine the loan amount for which you may qualify.

• Typically, the anticipated housing payment is compared to gross earnings and debt.

• Many loan programs offer expanded guidelines that qualify applicants for higher loan amounts.

• Once you know your maximum loan amount, it’s up to you to decide if it’s right for you.

• Usually your monthly mortgage payment is made up of four amounts – often referred to as PITI:

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P

rincipal

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I

nterest

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T

axes

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I

nsurance

• Certain funds may be held in an escrow account to pay tax and insurance bills, as they come due.