Created
June 25, 2014 01:54
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Mortgage Loan Qualification Equation
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| Total qualified mortgage amount = ( 0.5 - c(m/(1-(1+m)^-n)) - T(c) - I(c) + R((A-d*12)/12) ) / ( m/(1-(1+m)^-n) + T + I ) | |
| A = gross annual income | |
| I = decimal insurance rate | |
| R = decimal maximum allowed payment/income ratio based on creditworthiness (44% -> 0.44, etc.) | |
| T = decimal tax rate / 12 | |
| c = down payment | |
| d = gross monthly debt | |
| i = decimal interest rate | |
| m = i / 12 | |
| n = total number of months |
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