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How Much Home Can You Afford?

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How Much Home Can You Afford?

To calculate the maximum mortgage payment you can afford under the back-end ratio, take your annual income, divide it by 12, and then multiply by 0.36 (or whatever your lender’s back-end ratio is. (0.28-0.36). Subtract your monthly debts from this amount to determine your maximum monthly mortgage payment under the back-end ratio.