This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
GDS and TDS Ratios
GDS stands for Gross Debt Service, and is used to compare your monthly payments to your monthly gross income. The leftover portion is used to determine how large a payment you could afford each month. This calculation cannot be higher than 32% of your income.
A TDS (Total Debt Service) Ratio takes the calculation above and adds other debts like credit card debts, line of credit, and other debts owing and applies that against your monthly income. This percentage cannot exceed 40% of your gross household income.
If you would like more information on TDSR/GDSR, click here.