How to estimate your debt service ratio.
Your total debt service ratio is the ratio of your debt to gross income. It's one of the ways you can understand how much you can afford for a new home, while making sure that live within your means and don't take on too much debt or financial risk.
Keep in mind that this is only an estimate. To understand what you're qualified for, reach out to one of our Mobile Mortgage Specialists.
Use our mortgage calculator to get an idea of what your payments could be.
Include condo fees, property taxes, mortgage insurance and heating costs. Read our break down of additional housing costs for a full list.
Consider credit card debt, car loans and student loans.
To find this number, multiply your gross income by 0.4. Our budget calculator is an easy way to do the math.
For example
If your gross income is $4,000, your monthly obligations shouldn't be more than $1,600.