As Real income is directly utilized, it is called as direct income. Money income cannot be directly utilized, but it is used as a medium of exchange for obtaining goods and services. So it is called as Indirect income of the family. Money income is mainly based on the earning capacity of the members, but the real and psychic income depends on the skill that is exercised in management of everyday living. Some people swear real estate investing is the way to create a comfortable retirement: Buy a piece of property. Collect income while the tenant pays off your mortgage.

Do you need a Home Mortgage?

Take our Quiz and find the best lenders for your Mortgage Refinance or Home Purchase.

Have you found a home that you want to buy? Or plan on refinancing? Or you're looking at homes around a certain price point. Can you get a loan to buy it? Need to see how much you can qualify for on a refinance?

This mortgage income calculator can give you the answer. This calculator not only takes into account the loan amount and interest rate, but also looks at a whole range of other factors that affect the affordability of a home and your ability to get a mortgage, including your other debts and liabilities that have to be paid each month, as well as costs like taxes and homeowner's insurance that are part of the monthly mortgage payment.

It also makes it easy to see how changes in the mortgage rate or the loan amount affect the income required for a loan, by using the sliding adjusters below to change your results. Just start filling out the fields indicated below. Or scroll down the page for a detailed explanation of how to use the Mortgage Required Income Calculator.

FAQ: Great tool to use as loan amount estimates change as you shop for a new home. Or for a refinance when the appraised value forces a change in loan amounts because of loan to value (LTV).

What percentage of income do I need for a mortgage?

It is conservative to use only about 28% of your monthly income for a mortgage, although lenders may allow you up until about 35% of your monthly income.

Lenders examine your debt-to-income ratio, credit score, and current income to see if you qualify for a home loan. It is best to pay attention to these details. Try to get them up to the required minimum before you apply for a home loan.

A $300k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an annual income of $74,581 to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

A $500k mortgage with a 4.5% interest rate for 30 years and a $10k down-payment will require an annual income of $121,582 to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

Can I use a mortgage calculator based on income?

You can gauge how much of a mortgage loan you qualify based on your income with our Mortgage Required Income Calculator. You will need to work backward by altering the mortgage cost and supplying details of your other financial commitments. The calculator will then reply with an income value with which you compare your current income.

A $200k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an annual income of $54,729 to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator. The calculator also gives a graphical representation of required income for a broader range of interest rates.

Mortgage calculator with credit score and income?

To know if you qualify for a mortgage with your current income and credit score, try out our Mortgage Required Income Calculator. Each mortgage loan comes with additional income and credit score requirements depending on how large the loan is.

To know if you will qualify for a mortgage based on your current income, try our Mortgage Required Income Calculator. You will need to supply information about the cost of the Mortgage, down-payment, interest rates, and other liabilities, after which the calculator responds with the required minimum income to qualify for the loan.

A $250k mortgage with a 4.5% interest rate for 30 years and a $10k down-payment will require an annual income of $63,868 to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator. The calculator also gives a graphical representation of required income for a wider range of interest rates.

A $350k mortgage with a 4.5% interest rate over 30 years and a $10k down-payment will require an annual income of $86,331 to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.

Calculating the Income Required for a Mortgage

You've got a home or a price range in mind. You think you can afford it, but will a mortgage lender agree? Or you want to take cash out for a refinance and are not sure what loan amount you can qualify.

Mortgage lenders tend to have a more conservative notion of what's affordable than borrowers do. They have too, because they want to make sure the loan is repaid. And they don't just take into account what the mortgage payments will be, they also look at the other debts you've got that take a bite out of your paychecks each month.

FAQ: To see if you qualify for a loan, mortgage lenders look at your debt-to-income ratio (DTI).

That's the percentage of your total debt payments as a share of your pre-tax income. As a rule of thumb, mortgage lenders don't want to see you spending more than 36 percent of your monthly pre-tax income on debt payments or other obligations, including the mortgage you are seeking. That's the general rule, though they may go to 41 percent or higher for a borrower with good or excellent credit.

For purposes of calculating your debt-to-income ratio, lenders also take into account costs that are billed as part of your monthly mortgage statement, in addition to the loan payment itself. These include property taxes, homeowner's insurance and, if applicable, mortgage insurance and condominium or homeowner's association fees.

FAQ: Your debt-to-income ratio also takes into account such things as auto loans, minimum credit card payments, installment loans, student loans, alimony, child support, and any other payments you are required to make each month. It doesn't include routine monthly charges for things like utilities, internet service, cable or satellite TV, mobile phone subscription or other charges for ongoing services or other things where the charge is newly incurred each month.

So to calculate if you have the required income for a mortgage, the lender takes your projected monthly mortgage payment, adds to it your minimum monthly payments for credit cards and any other loans, plus legal obligations like child support or alimony, and compares it to your monthly income. If your debt payments are less than 36 percent of your pretax income, you're in good shape.

What if your income varies from month to month? In that case, your lender will likely use your average monthly income over the past two years. But if you earned significantly more in one year than the other, the lender may opt for the average of the year with lower earnings.

FAQ: Your required income doesn't just depend on the size of the loan and the debts you have, but will vary depending on what your mortgage rate is and the length of your loan. Those affect your monthly mortgage payment, so the mortgage income calculator allows you to take those into account as well.

Using the Mortgage Income Calculator

Loan information

Begin by entering the desired loan amount, expected mortgage rate and length of the loan in the spaces provided. As you do, you'll notice that the required income and a calculation of the monthly mortgage payment imme

Money Income Vs Real Income