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What the bank counts
This home's actual carrying costs, payment stress-tested at 6%
- Mortgage, tested at 6%
- $5,093
- Property tax
- $406
- Heat allowance
- $150
- Housing costs
- $5,649 / mo
Lenders cap these at 39% of gross income — that sets the number.
Income needed
$174,000
gross annual household income
- Payment at 4%
- $4,187 / mo
- Cash down
- $199,000
Assumes no other monthly debts · 25-yr amortization
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