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Property Selling Price:	$250,000.00
Down Payment:	$50,000.00
Loan Amount:	$200,000.00
Principal and Interest:	$1,199.10
Monthly Taxes:	$229.17
Monthly Hazard Insurance:	$125.00
Monthly Mortgage Insurance:	$0.00
Total Mortgage Payment:	$1,553.27
Income Needed for Payment:	$5,177.56
Allowable Debt Payments:	$310.65

Mortgage companies use ratios to analyze your mortgage payment. The housing payment ratio (or front ratio) used in this calculation is 30%, or (1,553.27 / 5,177.56). The housing expense, or front ratio, compares your total mortgage payment to your monthly income.

The total debt expense ratio (or back ratio) is 36%, or [(1,553.27 + 310.65) / 5,177.56]. This total debt expense, or back ratio, compares your total monthly obligations including your total mortgage payment to your monthly income.