How much house can you afford? Learn how to run your own numbers to determine the answer!
2016-12-12
Where do these numbers above come from? Most government-backed mortgages utilize the following ratios for their underwriting: Front-end debt-to-income ratio = housing-related costs (PITI) divided by gross income. PITI stands for principal, interest, taxes, and insurance. Back-end debt-to-income ratio = housing-related costs (PITI) plus all recurring monthly debt, all dividedRead More →
Mini Investment Primer
2016-12-09
Net Operating Income (NOI) Gross Income – Operating Expenses = NOI Cap Rate Divide the Net Operating Income (NOI) by the sales price, and voila!–there’s the cap rate. In contrast to the GRM, the Cap Rate is not a multiplier but a rate of annual return. Example: Say the property has anRead More →
