Home Affordability Calculator Assumptions

Published on September 13, 2017

What assumptions did we make?

Mortgage Insurance – To estimate mortgage insurance, we are using the Radian Borrower-Paid Mortgage Insurance Prime(A) rate card with the effective date of 6/20/2016. We estimate mortgage insurance premiums based on the Non-Fixed grid for loans greater than 20 years.

DTI for Maximum Affordability Amount – We use a debt-to-income ratio of 43% when calculating the maximum home affordability amount, which is below the maximum allowable DTI ratio for Fannie Mae conventional conforming loans.



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