Banking Ratios
Housing Ratio
Front-end ratio: housing cost / gross income.
Inputs
Monthly housing costs
Total: $1,900.00
$
$
$
$
Monthly gross income
Total: $6,500.00
$
Include everything tied to the home: PITI, HOA, PMI, and required utilities/insurance. Use pre-tax income for the ratio.
Results
Housing ratio
29.2%
Housing cost ÷ gross income
Rating
Above 28% rule
Total monthly housing
$1,900.00
Total monthly income
$6,500.00
28% target (conventional)
$1,820.00
31% target (FHA)
$2,015.00
Housing cost breakdown
Income by source