A. Calculating the percentage of your income that the bank will allow you to apply to your mortgage is really quite simple. You can use up to 32% of your monthly income for mortgage payments, and an additional 10% for other debts for a maximum of 42% of your monthly income used for debt payments before you no longer qualify for a mortgage.
ex. If you make a combined $10,000 in your household, $4,200 of your income can be used for your mortgage and other debt. $3,200 for your mortgage and $1,000 for everything else. If you have good credit and no other debt, the bank will let you use $4,200 for your mortgage, meaning you will qualify for a larger loan.
