Real Estate Oahu Hawaii - Honolulu Real Estate for Sale - Real Estate Honolulu Hawaii - Relocation

<body> <font face="Verdana" size="2"> <p>Following the steps below will result in a calculation of two sets of figures. These represent the low and high extremes of the mortgage amount you may qualify for. </p> <ol> <li>Take your total monthly income from all sources and multiply it by .28 and also .40. (These are the low and high extremes that in fact are percentage of your income. You should use both numbers) </li> <li>Subtract your monthly debts. (This should include all personal debts including credit cards, car payments and child support.) This will give you the amount of your income that you have left for your monthly house payment. </li> <li>Find out what your property tax and insurance will equal if paid in twelve monthly installments. Subtract this from the total arrived at in #2. (You may get these figures from an insurance agent and the local government offices where you are thinking about purchasing a home.) This will leave you a net mortgage amount that you can afford. (Principal and Interest). </li> <li>Multiply this amount by 12 months. This will give you your annual mortgage payment.  </li> <li>Divide this amount by the current average interest rate. You may find this out from your local lender. For example: if the rate is 7 1/4%, you would use .0725. The result of this final step will give you the amount of a mortgage that you are likely to qualify for. </li> <li>Now add the amount that you have saved for a down payment and this will give you the approximate price of a house that you can afford. </li> </ol> </font> <p><a target="_top" href="index.shtml">Home Page</a></p> </body>