HOW MUCH DO YOU NEED TO MAKE TO AFFORD A $525,000 HOME?

@realmortgagementor

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Promoted product

E Mortgage Capital Inc.

Why it worked

The video provides a clear, step-by-step breakdown of a complex financial calculation (mortgage affordability) that is highly relevant to a large audience. It uses on-screen text and clear explanations to make the information accessible and actionable, with a direct call to action for personalized advice.

Summary

This video explains how to calculate the minimum income needed to afford a $525,000 home using an FHA loan. It breaks down the down payment, closing costs, and monthly PITI (Principal, Interest, Taxes, Insurance) plus MIP (Mortgage Insurance Premium), and then uses debt-to-income ratio multipliers to determine the required gross monthly income.

Structure

1Introduce the home price and loan type (FHA).
2Calculate down payment and closing costs.
3Calculate monthly PITI + MIP.
4Calculate minimum income using a 40% debt-to-income ratio.
5Calculate income using a higher debt-to-income ratio multiplier for comfort.
6Offer to run personalized scenarios via DM.

Product placement

E Mortgage Capital Inc. (ACTS - provides mortgage services, its name is visible on screen and the video discusses mortgage calculations and qualification. Removing the name would not change the video's content, but it is the entity providing the service being discussed.)

Original caption

How much do you need to make to afford a $525,000 home? - #realestate #mortgage #mortgagetips #homebuyer #homeownership - E Mortgage Capital Inc. NMLS 1439141

More from @realmortgagementor

Call to action

Send me a DM to run my scenario

On-screen text

HOW MUCH DO YOU NEED TO MAKE TO AFFORD A $525,000 HOME? FICO 640 Rate 5.75% (6.280 APR) 30 Year Fixed FHA REAL MORTGAGE MENTOR example going an FHA Lower score way is credit FHA love Anything doesn't rate hit 640 clear $525,000 sales And to do 3.5% together $18,375 payment now for level going the purchase the county just example I have it $13,000 And a lot rates been willing the but not and competition to be $31,375 C.C. Here's cash to for the payment principal interest insurance also insurance is required for all mortgages everything We are at $3,911 PITI + MIP $8,604 per to get for loan instead multiplier keeping yourself little comfortable on the you're So do it by a half recommendation $9,777 month definitely the clear comfortable monthly $10,950 number by 2.8

Transcript

525,000 home? Here's how much you need to make to afford it. For this example, we're going with an FHA loan, lower credit score, 640 by the way is the magic credit score for FHA love. Anything 640, anything higher doesn't really help us with the rate. Hit 640, you're in the clear. Here's our $525,000 sales price. And since we're doing FHA, we're going to do just 3.5% down. Let's scrape together $18,375 and there's our down payment. Now for closing costs at this level, it's going to vary based off of the time you purchase, the county, just for the example, I have it at $13,000. And a lot of times when rates have been high, sellers are willing to cover the closing costs, but if not, and there's competition, then you will have to be bringing in $31,375. Here's our cash to close for the payment. Principal, interest, taxes, insurance, plus MIP, mortgage insurance is required for all mortgages. Everything we are at $3,911 per month. Now to our minimum income to qualify for that payment. We multiply it by 2.2. We need to be making $8,604 per month to get approved for the loan. Instead, do a little multiplier, keep yourself a little comfortable on the amount of money you're putting out. So do this, multiply it by 2.5. This is my recommendation, keeping us at about 40% of our debt to income ratio. We need to be making $9,777 per month. Here's our last limiter, keeping on the debt to income ratios. Number, take that number and multiply it by 2.8. So if you're making $10,950 well, you are definitely the clear, comfortable monthly. Send me a DM to run my scenario.