Calculate Front End - 28% of gross monthly income
Note: This guide is for estimate purposes only. There are additional factors to consider when applying for a mortgage. Consult a licensed mortgage broker for details regarding your situation.
Debt to Income = Monthly Debt Payments / Gross Monthly Income
The Back End of the 28/36 Rule uses the Debt to Income ratio to help lenders determine what you can afford to pay in terms of a monthly mortgage. The below formula does not give you your debt to income ratio. Rather, it takes your monthly debt (excluding housing) and determines your maximum allowable monthly mortgage payment at 36% Debt to Income.
Calculate Back End - 36% total debt
Note: This guide is for estimate purposes only. There are additional factors to consider when applying for a mortgage. Consult a licensed mortgage broker for details regarding your situation.