Mortgage PITI & Affordability Tool

Lenders typically require a **two-year history** of stable income in the same field. For W-2 employees, verification is often done via digital payroll links (like The Work Number). If you are self-employed, lenders will analyze the "net profit" from your last two years of tax returns, often averaging the two to determine your qualifying monthly income.

Property taxes are local taxes based on your home's value. In our calculation, a $5,400 annual tax bill results in a $450.00 monthly payment. These funds are held in escrow to pay the county twice a year.

Required by lenders, this policy protects your home against hazards like fire or storms. For a standard $1,500 annual policy, you contribute $125.00 per month to your escrow account.

HOA fees are common in condos or planned communities. Unlike taxes and insurance, these are usually paid directly to the association, but lenders include them in your **DTI calculation** because they affect your ability to pay your mortgage.

Lenders divide your total monthly debt by your gross income. For example, if your total PITI is $2,200 and you earn $8,000, your DTI is 27.5%. Keeping this under 36% is standard for 2026 mortgage approvals.

If your down payment is below 20%, you must pay PMI. This is a monthly fee that protects the lender. Once you reach 20% equity in your home, you can request to have this removed.