Ask Paula: I’m Recently Retired. Do I Pay Off My Rentals Or Buy More Real Estate?
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How to Calculate Your Monthly Income for Mortgage Payments
Most lenders will be able to give you the same type of loan that they'll give to any W2 employee. They look at your last two years of tax returns and then look at your monthly income. Based on that monthly income, they calculate how much they would be willing to give you for a mortgage payment based on what's called their front-end ratio and back-end ratio.
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